IMF dims South Africa growth prospects

The International Monetary Fund slightly dimmed South Africa's 2012 growth forecast to 2.6 percent on Thursday and warned that chronic joblessness was a risk to the continent's biggest economy. "If not addressed, the stubbornly high unemployment rate could become politically and socially unsustainable," an IMF report said.
Released after a visit by IMF representatives three months ago, the study also warned of external risks from the eurozone and a Chinese slowdown that could see less demand for exports and a further decline in commodity prices. The Fund revised lower a forecast for growth of 2.7 percent issued in May. The forecast for 2013 was cut from 3.6 percent to 3.4 percent.