# The Bureau for Economic Research says South Africa’s economic outlook depends on whether the government and the South African Reserve Bank work together on a new three-percent inflation goal. In its latest report, the bureau warns strict government spending and high interest rates are slowing growth, with the gross domestic product expected to grow below one-percent this year. It says an early agreement on the target could lift growth to two-percent, but poor cooperation would keep inflation high, prolong economic stagnation, and increase unemployment.
Bureau warns shifting inflation target to 3% will reshape SA’s economic outlook