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South Africa Economic Snapshot

Economic Forecast Summary (May 2021)

The economy is projected to rebound by 3.8% in 2021 and 2.5% in 2022.The strong rebound at the end of 2020 has slowed in the first half of 2021 due to a protracted second wave of the virus that has held back economic activity. However, growth is projected to pick up in the second half of the year, driven by domestic demand and commodity exports. Household consumption will contribute significantly to growth as the economy opens up and exceptional savings last year are spent at least partially. Private investment will progressively strengthen.

 

Reform Priorities (April 2021)

Going for Growth 2021 - South Africa

The COVID-19 pandemic has caused millions of workers to lose their jobs, while the number of discouraged workers increased. Investment has been on a downward path already before the crisis, marred by policy uncertainty, and lack of essential infrastructure. Regulatory restrictions in many areas are a threat to the recovery. Stronger growth is needed to place the government debt trajectory on a sustainable path and to finance large unmet needs in education, health and social spending.

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2021 Structural Reform Priorities

  • Competition and regulation: Remove barriers to competition and lift regulatory restrictions
  • Competition and regulation: Reduce barriers to entrepreneurship
  • Infrastructure: Improve infrastructure to boost growth
  • Education and skills: Raise quality and equity in education
  • Environmental policy: Green energy policy to limit environmental impact

 

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Economic Survey of South Africa (July 2020)

Executive Summary

Presentation