Zuma says SA could miss 2017 economic growth target

South Africa's economy will likely fail to meet the 1.1 percent annual growth targeted by the government, President Jacob Zuma told delegates at the ruling African National Congress' policy conference on Friday.

Data in June showed the economy had slipped into recession as major sectors shrunk while political and policy uncertainty dragged business and consumer confidence to their worst levels in decades. 

Zuma has drawn unprecedented criticism from senior ruling party members in recent weeks. A shock cabinet reshuffle prompted in March ratings agencies to downgrade South Africa to "junk" status and unemployment is at a 14-year high.

Isaac Mashego, senior economist at Nedbank, said with the rate of economic growth not keeping in touch with the government's expenditure and the budget deficit widening, the government is going to have borrow more.

"This might mean going to multilateral institutions like the IMF. This is the worse case scenario," he said.