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.
Social progress over the past two decades has been impressive. But growth has not been inclusive enough due to insufficient employment growth. Macroeconomic policies are stabilising inflation and public debt. Tackling infrastructure bottlenecks and improving business regulation would boost job creation. Improving wage negotiations and job matching would also promote more inclusive growth.
South Africa has made impressive social progress over the past two decades, lifting millions of people out of poverty and broadening access to essential services like water, electricity and sanitation.
With Africa’s population set to double by 2050, modernising local economies will be vital to make the continent more competitive and to increase people’s living standards, according to the African Economic Outlook 2015, released at the African Development Bank Group’s 50th Annual Meetings.
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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.
By participating more effectively in the global production of goods and services, Africa can transform its economy and achieve a development breakthrough, according to the latest African Economic Outlook, released at the African Development Bank Group’s Annual Meetings.
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.
Source: OECD Main Economic Indicators (updated continuously) - Composite leading indicators (CLIs) are calculated for 29 OECD countries (Iceland is not included), 6 non-member economies and 9 zone aggregates. A country CLI comprises a set of component series selected from a wide range of key short-term economic indicators mainly covered in the MEI database.
Despite South Africa's wealth in natural resources, healthy business environment and financial system, and its sound public finances, the country has yet to fulfil its great potential, said Angel Gurría at the launch of the 2013 OECD Economic Survey of South Africa.