factors impacting on the south african economy
Citi started the year with an economic growth forecast for South Africa of just 1.1%, and has now downgraded this to 0.9%. South Africa is a country of well-known promise and peril. The main factors affecting economic development include. The Coronavirus (COVID-19) has resulted in mass production shutdowns and supply chain disruptions due to port closures in China, causing global ripple effects across all economic sectors in a rare “twin supply-demand shock”. What stands out most, PwC pointed out, is the vast gap in levels of ‘extreme concern’ between South African and Global CEOs in key areas of socio-political and economic threats. Research purpose: The study aims to analyse and understand factors affecting labour absorption in South Africa. South Africa’s economy has experienced relatively slow growth in recent years, and GDP has not risen by the rates seen prior to the global financial crisis of 2008-09. Data source: Statistics South Africa P0441 – Gross Domestic Product (GDP), 2nd Quarter 2017 The major sector of the economy is finance, real estate and business services, which contributes around 22% to GDP. The country is suffering from the same global trends as many other developing markets, with falling commodity prices and the threat of rising interest rates taking their toll. South Africa is an upper-middle-income economy, one of only eight such countries in Africa. transport and communication. Motivation for the study: South Africa is characterised by limited job opportunities and a rapidly expanding labour force. However, it is the most industrialized, technologically advanced, and diversified economy on the African continent. An attempt is made in this paper to shed a light on global financial crises between 1980 and 2012 and provides a discussion on its impact on the South African economy. South Africa’s economy is the second largest in Africa after Nigeria but with substantially better infrastructure. This article aims to investigate the main factors that triggered recent global financial crises and its impact on the South African economy. It boasts a relatively high GDP per capita compared with other countries in Sub-Saharan Africa, but it also has extremes of wealth and poverty. South Africa Economic Growth After this year’s projected contraction at the hands of Covid-19, the economy is seen rebounding in 2021 as domestic and foreign demand revive. Its is followed by general government services at 17%, and then the sector of wholesale, retail and motor trade, catering and accommodation at 15%. hindering potential economic growth and development. Despite being the largest economy on the African continent, the nation is plagued by high levels of unemployment, a poor education system and staggering income inequality. The Impact Of Covid-19 On African Economies The situation in South Africa remains fluid and could become socially volatile in some regions. Levels of infrastructure – e.g. Economic development requires a degree of political stability, investment and mixture of public and private initiatives to increase economic potential. The economy of South Africa is the second largest in Africa.