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.
The economic collapse in Q2 was broad-based, but the recovery will not be as uniform. Unemployment is distressingly high, confidence levels depressingly low, and reliable electricity will remain a concern for the foreseeable future. Meanwhile, the country is in a dire fiscal situation and the Medium-Term Budget Policy Statement, due later this month, will be critical in easing fiscal concerns. We hope that the MTBPS and the forthcoming release of President Ramaphosa’s recovery plan will offer some answers about stressed state-owned entities, the public sector wage bill, and where the funding for the infrastructure investment-led recovery programme will come from. (Source: South Africa Quarterly Update, published October 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) |
52.6 |