An Overview of the Economy
Economically, South Africa is considered to be an emerging
market with an abundant supply of natural resources. The financial,
legal, communications, energy and transport sectors are
well-developed, and the country has a modern infrastructure.
However, growth has not been strong enough to substantially lower
South Africa's high unemployment rate (which was at 24.2% in 2007),
and the economic problems from the apartheid era remain serious,
especially regarding poverty and a lack of economic empowerment
among disadvantaged groups. Economic policy is currently focusing
on targeting inflation and liberalizing trade, hoping to increase
job growth and household income. GDP growth in 2006 and 2007 was
5%, up from 3.7% in 2004 and 4.5% in 2005, while inflation in 2007
stood at 6.5%. This improvement has been steady, and the country is
showing good potential for the future. The Economist Intelligence
Unit anticipates that real GDP will accelerate again and the 2008
budget promises infrastructure investment towards railways,
harbours and ports whilst $7.7 billion dollars will be directed at
improving the generation capacity of Eskom, South Africa's
state-run electricity company.
| statistics |
|
| GDP (PPP) (IMF) (US$Billions) |
467.1 |
| GDP (PPP) (CIA) (US$Billions) |
467.1 |
| GDP Growth (IMF) (%) |
5.1% |
| GDP Growth (CIA) (%) |
5.1% |
| GDP Per Capita (PPP) (IMF) (US$) |
9,761 |
| GDP Per Capita (PPP) (CIA) (US$) |
9,800 |
| GDP by Sector (%) |
Agriculture: 3.2%
Services: 65.5%
Industry: 31.3% |
| Inflation (%) |
7.1% |
| Population Below the Poverty Line (%) |
50% |
| Labour Force (Millions) |
20.5 |
| Labour Force by Occupation (%) |
Agriculture: 9%
Services: 65%
Industry: 26% |
| Unemployment (%) |
24.3% |
| Main Industries |
Mining, automobile assembly, metalworking,
machinery, textiles, iron and steel, chemicals,
fertiliser, foodstuffs, commercial ship repair. |
Sources: CIA World Factbook, IMF
GDP
Figures from the IMF show a growth rate of 5.1% in 2007, which
they predict will drop to 3.8% in 2008.
| economic indicators |
2003 |
2004 |
2005 |
2006 |
2007 |
| GDP (US$Billions) |
166.7 |
216.3 |
242.2 |
257.3 |
282.6 |
| GDP Growth (%) |
3.1% |
4.8% |
5.1% |
5.0% |
5.1% |
| GDP Per Capita (US$) |
3,622 |
4,666 |
5,160 |
5,384 |
5,906 |
| GDP Per Capita (PPP) (US$) |
7,408 |
7,887 |
8,488 |
9,112 |
9,800 |
| Inflation (%) |
5.8% |
1.4% |
304% |
4.7% |
7.1% |
| Unemployment (%) |
31.0% |
26.2% |
26.7% |
25.5% |
24.3% |
Foreign-Exchange
& Gold Reserves (US$Billions) |
8.0 |
11.7 |
20.6 |
23.7 |
33.0 |
| Mobile Phone Users |
16,860,000 |
16,860,000 |
33,960,000 |
33,960,000 |
39,660,000 |
| Internet Users |
3,100,000 |
3,100,000 |
5,100,000 |
5,100,000 |
5,100,0000 |
Sources: CIA World Factbook, IMF
Major Exports & Imports
Major exports 2007
Gold, diamonds, platinum, other metals,
minerals and machinery.
major imports 2007
Machinery and equipment, chemicals, petroleum products,
scientific instruments, foodstuffs.
| export partners |
% of total |
| Japan |
12.1% |
| US |
11.8% |
| UK |
9.0% |
| Germany |
7.6% |
| Netherlands |
5.3% |
| China |
4.0% |
| import partners |
% of total |
| Germany |
12.6% |
| China |
10.0% |
| US |
7.6% |
| Japan |
6.6% |
| Saudi Arabia |
5.3% |
| UK |
5.0% |
Source: CIA World Factbook
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