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.
South Africa is the fifth-hardest hit country globally in terms of Covid-19 infections and the economy is expected to contract by 9.1% this year. With President Cyril Ramaphosa failing to produce the assured leadership the early stages of the response promised, and the ruling African National Congress (ANC) failing to find a common voice in dealing with either the public health crisis or the economic devastation wrought by the virus, the situation appears to be going from bad to worse. Furthermore, South Africa was on a weak fiscal footing at the start of the year, but the situation has deteriorated to such an extent that the country’s finance minister repeatedly warns of a sovereign debt crisis. (Source: South Africa Annual Country Profile, published July 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 |