Until recently a lack of data meant that little was known about the distribution of firms and firm dynamics in South Africa.
Growth is projected to reach 1.5% in 2018 after many years below one percent or negative in per capita terms. Low growth and high unemployment have adversely affected the well-being of South Africans. Since 2010, inequality, measured by the Gini coefficient at 0.62, has almost stagnated withering the social contract in a context of policy mistrust.
Deepening regional integration within the Southern African Development Community (SADC) will raise potential growth for all member countries.
Lowering high levels of unemployment and inequality are amongst the largest challenges facing South Africa.
The South African economy has registered tremendous progress over the past two decades, boosting living standards and lifting millions out of poverty nationwide. Further reforms are now necessary, however, to revive economic growth and ensure that all South Africans can benefit from it.
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This country note from Going for Growth 2017 for South Africa identifies and assesses progress made on key reforms to boost long-term growth, improve competitiveness and productivity and create jobs.
Reforms over the past two decades have produced a well-balanced, modern tax system. However, considerable revenues will be needed in the years ahead to expand social spending and infrastructure in order to raise growth and well-being. The challenge is to generate these revenues without penalising growth or exacerbating inequality.
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This country note from Going for Growth 2015 for South Africa identifies and assesses progress made on key reforms to boost long-term growth, improve competitiveness and productivity and create jobs.
South Africa needs to address a wide range of structural bottlenecks in order to achieve strong medium-term growth.
South Africa has experienced a relatively weak recovery from the great economic crisis compared to other BRIICS countries.