In-Depth Analysis
South Africa
The Rainbow Nation has lost its position as Africa’s top economy and is no longer seen as a default gateway into the continent. Political struggles, policy uncertainty, and low confidence levels are straining economic growth, while beleaguered parastatal Eskom is unable to adequately power a largely stagnant economy.
Aggressive monetary stimulus and a substantial fiscal relief package will go a long way towards keeping businesses afloat and preventing a large proportion of the population from entering destitution, but economic production will take a massive hit this year. We expect a 7.2% GDP contraction this year followed by a 4.2% recovery in 2021. At current levels, government finances are highly vulnerable to fluctuations in investor sentiment and fiscal consolidation will have to become a top priority in order to regain fiscal credibility. (Source: South Africa Quarterly Update, published May 2020)
Macroeconomic Data
(2019)
|
Fiscal Balance (as a % of GDP) |
-6.6 |
|
Consumer Price Index (% change y-o-y, avg) |
4.1 |
|
Current Account Balance (as a % of GDP) |
-3.0 |
|
Real GDP (annual % change) |
0.2 |
|
GDP per Capita, US$ |
5,992.4 |
|
Import Cover (months) |
5.3 |
|
Population, million |
58.7 |
| Total External Debt (as a % of GDP) |
52.1 |