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.
The near-term outlook for the South African economy has turned decisively gloomy. After recording positive growth in H2 2018, the economy contracted notably in Q1, pushing the overall growth forecasts notably lower, with dire consequences for revenue collection, job creation and confidence levels. The economy urgently needs a conducive environment for the private sector to flourish, of which a prerequisite will have to be policy and energy supply certainty. Unfortunately, the recent State of the Nation Address did not help much in this regard, with no real clarity regarding some key policy issues, while we have again heard the worrying extent of Eskom’s financial issues. (Source: South Africa Quarterly Update, published June 2019)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-4.3 |
|
Consumer Price Index (% change y-o-y, avg) |
4.6 |
|
Current Account Balance (as a % of GDP) |
-3.6 |
|
Real GDP (annual % change) |
0.8 |
|
GDP per Capita, US$ |
6,430.4 |
|
Import Cover (months) |
6.1 |
|
Population, million |
57.5 |
| Total External Debt (as a % of GDP) |
49.2 |