The report, which forecasts the outlook for subsaharan africa in 2016 and 2017. As a regional manufacturing hub, it is the most industrialized and diversified economy on the continent. African economic outlook 2016 algeria angola benin botswana burkina faso burundi cabo verde cameroon central african republic chad comoros congo congo, dem. Demographic, employment, and wage trends in south africa. Jan 18, 2016 the south african economy depends heavily on the manufacturing sector that forms. As can be seen from the graph during thabo mbekis tenure south africans enjoyed a surge in gdp per capita, while more recently the gdp per capita has remained relatively flat hardly any growth from 2010 to 2015. In 2014, the mckinseydesigned project was formally launched by nowdisgraced president jacob zuma with vibrant state and corporate fanfare. Original english manuscript completed in january 2016. The role and significance of state owned enterprises, public.
This publication is the official authoritative reference work on the republic of south africa and is updated annually. The south african economy contracted by 1,4% in the fourth quarter of 2019, following a contraction of 0,8% revised in the third quarter. In its world economic outlook report issued at the end of october, the imf projected south africas gdp would expand by 0. Firstly the share of mining in gdp stood at 11% in 1994, but has steadily declined over an eighteen year period to its current 5% in 2012. By the end of 2016, south africas economy was still roughly the same size it was in 2009, according to the world bank, which anticipates growth of about 1. The 11th edition of the south africa economic update was produced by a world bank. African economic outlook 2016 african development bank.
The volume of field crop production decreased by 6,0%, mainly as a result of a decrease in the. According to draft level 3 regulations, tobacco and more retail products could again be sold, limited national air travel would be allowed, and mines would be able to scale up to 100% employment. The sarbs growth estimates are moderately higher than those of the imf for 2016 and 2017, though for the following year, the two forecasts converge. Pmi falls at the fastest pace in the surveys history in april. In terms of growth, south africa is still rebounding from the 1998 slowdown with a growth rate at 3. South africa has been rocked by news that it has slipped into a recession after its gross domestic product gdp declined 0. The south african economy continued its decline in 2015 as a result of factors ranging from rising interest rates, severe drought in most parts of the country that started impacting food prices, subdued growth in equity markets and continuing pressure on disposable household incomes. June 2016 demographic, employment, and wage trends in south africa.
In short, the share of mining in national output has more than halved in the postapartheid period. The production of hay increased by 396 000 tons 8,8%, sugar cane by 2 209 tons 1,4% and dry beans by 36 390 tons 93,3% from 201516. We recently incorporated our updated global view on the coronavirus shock into our 2020 forecasts for the south african economy, taking our fullyear growth estimate down to 0. South africa bee a disservice to south africa s economy moeletsi mbeki may 21 2020 17. Finance, real estate and business services is the largest industry in south africa, and it has been contributing more and more to south africas economy as the years has gone by. Dec 28, 2015 south africa is the second highestranked african country, after mauritius, and thirdplaced among the brics economies in the world economic forums 20152016 global competitiveness index, ranking 49th out of 140 countries surveyed while placing first for strength of auditing and reporting standards as well as financing through local equity. South africas economic structure south african market insights. The 2016 municipal elections indicated a possible sea change for the next national elections 2019 general election ge, where the current ruling alliance could lose its majority. Rand slumps to new alltime low on rising fiscal concerns and surprise central bank cut. Nonetheless, 2016 may mark the trough of south africas business cycle. Jan 17, 2016 a new economic report by focuseconomics paints a bleak picture for the south african economy in 2016 and 2017. The positive expectations remain precarious, however, as the downturn in economic activity during 2001 in the oecd area could have a negative impact on the south african economy. South africas economic structure south african market.
Blue economy threats, contradictions and resistances seen from south africa south africa hosts africas most advanced form of the new blue economy, named operation phakisa. It held its first universal suffrage elections in 1994, after a transition from white minority rule under. South africas human opportunities, 2015 28 figure 2. The manufacturing sector also provides the largest workforce among all sectors. Human capital trends report for south africa 2016 the new.
Debt dynamics and development finance in africa, was prepared by a team of unctad contributors, headed by junior roy davis, and composed of the following people. In this equilibrium, slow growth and high inequality reinforce each. The role and significance of state owned enterprises. South africa needs broadbased economic transformation that creates jobs and. The south african economy, which grew by an estimated 0. Overview of the petrol and diesel market in south africa. South africas gdp growth forecast for 2016 has been revised down to. Blue economy threats, contradictions and resistances seen. South sudan economic outlook african development bank. Relations congressional research service summary south africa is a multiracial, majority black southern african country of nearly 52 million. Sector performance during 2015 the services sector remained resilient and the mining sector recovered from protracted strikes in 2014. The report, which forecasts the outlook for subsaharan africa in. South african, african and global economic news fin24. This paper looks to uncover the growth traps and opportunities for the south african economy, with a focus on.
Economy sa definitely moving to level 3 lockdown soon, the question is how deputy minister may 22 2020 12. After the breakneck growth rates that characterised much of of the regions first decade in the 21st century, we are. The retail sector is one of the largest industries in the south african economy accounting for 14. Economy statssa does more with less to measure impact of the coronavirus pandemic may 19 2020 09. Cote divoire djibouti egypt equatorial guinea eritrea ethiopia gabon gambia ghana guinea guineabissau kenya lesotho liberia libya madagascar malawi mali mauritania mauritius morocco mozambique namibia niger nigeria rwanda. Government is the second largest contributor to our economy, contributing 17% to our overall gdp. This overview is extracted from the 2017 economic survey of south africa.
Volume 46, 2019 vol 45, 2018 vol 44, 2017 vol 43, 2016 vol 42, 2015 vol 41, 2014 vol 40, 20 vol 39, 2012 vol 38. South africa is an uppermiddleincome economy by the world bank one of only four such countries in africa alongside botswana, gabon and mauritius. On 21 may, the monetary policy committee mpc of the south african reserve bank sarb slashed its main lending rate by 50 basis points to 3. With the exception of south africa and the countries of north africa, all of which have diversified production systems, the economy of most of africa can be characterized as underdeveloped. Carbon emissions are barely taxed but a broad carbon tax is to be introduced in 2016. As can be seen from the graph during thabo mbekis tenure south africans enjoyed a surge in gdp per capita, while more recently the gdp per capita has remained relatively. In south africa, in line with international trends, corporatization, i. Macroeconomic performance and outlook real gdp growth was an estimated 5. Given population growth, gross domestic product gdp per capita growth has been close to nil since 2014, leaving little room to reduce poverty. The south african economy south africas gdp growth is expected to slow marginally from 1. Economic overview in brief the south african economy, which grew by an estimated 0. With regards to the outlook of the south african economy, andrew matheny and dylan smith, analysts at goldman sachs, noted. Trade and financial sanctions and internal political opposition to the. In 2015, subsaharan africa excluding south africa grew faster than.
This is the second time that i have had this privilege and association with deloitte, and its work on human capital management. This is the second time that i have had this privilege and association. The african economic outlook aeo celebrates its 15th edition this year. The value of primary agricultural production in south africa was r263,2 billion in 2016, while its contribution to the gdp was estimated at r72,2 billion in 2015. Over the years, the other sectors of the south african economy have grown faster than the.
Bineswaree bolaky, ange bella ndayisenga, laura paez and claudia roethlisberger. This overview is extracted from the 2017 economic survey of south africathe survey. The oil sector remains the key driver of the economy, followed by services and agriculture. Since 1996, at the end of over twelve years of international sanctions, south africas gross domestic product almost. On 21 april, president cyril ramaphosa announced measures to combat the economic impact of the covid19 pandemic totaling zar 500 billion about 10% of gdp, which aim to support businesses, retain employment and shield those most affected by the crisis. Bee fronting becoming more sophisticated, holding back transformation commission. South african economy economist world news, politics. It is an important driver of consumption and is characterised by high linkages and spill overs. Bee has not added any value to the sa economy and should be scrapped and replaced with an integrated business development policy, says political economist moeletsi mbeki. Africa as a whole has abundant natural resources, but much of its economy has remained predominantly agricultural, and subsistence farming still engages more than 60 percent of. Pdf an overview of the political economy of south africa. With south africas economic growth in decline since 2010, many voters voted for change in the 2016 municipal election.
South africas democratic transition in 1994 created expectations of a dramatic turnaround in the economic performance. The outlook for the south african economy has also deteriorated as a result of lower. The 2019 rebound was driven mainly by reopening some oil fields, including those in upper nile state, and resuming production, and by the peace agreement signed in september 2018. The africa investment report 2016 letter from the editor 1 letter from the editor in markets as in nature, what goes up must come down. The real gdp is the total value of goods and services that are produced in an economy in a. The source of data for this study were mainly the south african reserve bank, the federal reserve economic database and world bank database. Southern africa economic outlook 2018 african development bank. Measuring south africas economic growth there are numerous methods to measure the economic growth of a country, but the most commonly used one is that of the real gross domestic product gdp.
Jun 06, 2017 south africa has been rocked by news that it has slipped into a recession after its gross domestic product gdp declined 0. In february, the south african statistics council, a panel that advises government and the statisticiangeneral on issues affecting data, warned that the agency had reached a crisis point after exhausting all efficiencies. Insurance through challenging times pwc south africa. South africa yearbook 201617 government communication. Pdf the first chapter of the ninth edition of the economic update discusses recent. Below a graph showing south africas annual gdp per capita rand value of the south african economy per person living in it, as calculated by south african market insights.
South africa is an uppermiddleincome economy one of only eight such countries in africa. South africa economy gdp, inflation, cpi and interest rate. Inequalities and political rights demand larger governments in subsaharan africa 33. The data consists of the unemployment rate and economic growth rate of south africa for the period 1994 to 2016 on a quarterly basis. Labor market status and skills increasingly contribute to inequality 29. South africas economic history south african market insights. The post1994 period in the south african economy is characterised, perhaps most powerfully, by the fact that the economy recorded one of its longest periods of positive economic growth in the countrys. Human capital trends report for south africa 2016 the new organisation. Provide youth wage subsidies for to of youth who are currently unemployed population provide national health insurance 14 of the south african or 50% of people living below the poverty line including all persons living in extreme. Building assets for the poor through the pension system 32 box 2. The economy of south africa is the second largest in africa, after nigeria. The exchange rate and south africas integration into the global economy 18 box 2. The south african economy depends heavily on the manufacturing sector that forms.