In-Depth Analysis
South Africa
A decade of ‘State Capture’, economic policy uncertainty, unreliable electricity, and an economy decimated by Covid-19 containment measures all weigh on the Rainbow Nation’s outlook. South Africa continues to boast the continent’s most sophisticated economy, with a world-class financial sector and some globally respected institutions, but other African peers are swiftly gaining ground.
South Africa’s economic recovery stalled over the last three months as the country was gripped by a third wave of Covid-19 infections and severe unrest in certain parts of the country. The latter is expected to have a lasting effect on the local economy. In addition, the unemployment rate rose even further to a new high in Q2. However, economic activity in H1 was better-than-expected and prompted us to revise the economic growth forecast higher to 4.8% for 2021. The bounce-back remains purely technical, while data suggests that the country is still struggling to create real economic growth and employment opportunities. (Source: South Africa Quarterly Update, published October 2021)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-9.6 |
|
Consumer Price Index (% change y-o-y, avg) |
3.3 |
|
Current Account Balance (as a % of GDP) |
1.8 |
|
Real GDP (annual % change) |
-6.4 |
|
GDP per Capita, US$ |
5,691.9 |
|
Import Cover (months) |
6.72 |
|
Population, million |
59.4 |
| Total External Debt (as a % of GDP) |
45.2 |