South Africa has experienced a relatively weak recovery from the great economic crisis compared to other BRIICS countries. Major policy challenges for boosting economic growth include high market concentration in product markets, especially in network industries, low educational attainment, persistently high unemployment hurting youth and low-skilled most, and widespread informality which contributes to strong labour market duality.
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Previous Going for Growth recommendations include:
Actions Taken: Notable reforms in these areas over the past two years include:
The report also discusses possible impact of structural reforms on other policy objectives (fiscal consolidation, rebalancing current account and reducing income inequality). In the case of South Africa, the youth wage subsidy is likely to help reduce inequality through job creation, but puts pressure on the fiscal balance.