Answer to Question #325135 in Macroeconomics for Avela

Question

What are the prospects for economic growth in South Africa over the medium term? Evaluate and discuss the most pertinent influencing factors, referring also to how these factors impacted SA’s growth during the periods 2004 to 2007 and 2015 to 2019

Answer 1

Economic growth in South Africa is projected to rebound to 5.2% in 2021 before slowing to 1.9% in 2022 and 1.6% in 2023. Social protests in July halted a relatively strong rebound in activity. However, GDP growth will still be strong in 2021 driven by exports and household consumption.