South Africa Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

South Africa is a middle-income emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors; and a stock exchange that is Africa’s largest and among the top 20 in the world.

 

Economic growth has decelerated in recent years, slowing to an estimated 0.7% in 2017. Unemployment, poverty, and inequality - among the highest in the world - remain a challenge. Official unemployment is roughly 27% of the workforce, and runs significantly higher among black youth. Even though the country's modern infrastructure supports a relatively efficient distribution of goods to major urban centers throughout the region, unstable electricity supplies retard growth. Eskom, the state-run power company, is building three new power stations and is installing new power demand management programs to improve power grid reliability but has been plagued with accusations of mismanagement and corruption and faces an increasingly high debt burden.

 

South Africa's economic policy has focused on controlling inflation while empowering a broader economic base; however, the country faces structural constraints that also limit economic growth, such as skills shortages, declining global competitiveness, and frequent work stoppages due to strike action. The government faces growing pressure from urban constituencies to improve the delivery of basic services to low-income areas, to increase job growth, and to provide university level-education at affordable prices. Political infighting among South Africa’s ruling party and the volatility of the rand risks economic growth. International investors are concerned about the country’s long-term economic stability; in late 2016, most major international credit ratings agencies downgraded South Africa’s international debt to junk bond status.

Real GDP (purchasing power parity)

$680.04 billion (2020 est.)

$730.91 billion (2019 est.)

$729.8 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

0.06% (2019 est.)

0.7% (2018 est.)

1.4% (2017 est.)

Real GDP per capita

$11,500 (2020 est.)

$12,500 (2019 est.)

$12,600 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$350.032 billion (2019 est.)

Inflation rate (consumer prices)

4.1% (2019 est.)

4.6% (2018 est.)

5.2% (2017 est.)

Credit ratings

Fitch rating: BB- (2020)

Moody's rating: Ba2 (2020)

Standard & Poors rating: BB- (2020)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 2.8% (2017 est.)

industry: 29.7% (2017 est.)

services: 67.5% (2017 est.)

GDP - composition, by end use

household consumption: 59.4% (2017 est.)

government consumption: 20.9% (2017 est.)

investment in fixed capital: 18.7% (2017 est.)

investment in inventories: -0.1% (2017 est.)

exports of goods and services: 29.8% (2017 est.)

imports of goods and services: -28.4% (2017 est.)

Agricultural products

sugar cane, maize, milk, potatoes, grapes, poultry, oranges, wheat, soybeans, beef

Industries

mining (world's largest producer of platinum, gold, chromium), automobile assembly, metalworking, machinery, textiles, iron and steel, chemicals, fertilizer, foodstuffs, commercial ship repair

Industrial production growth rate

1.2% (2017 est.)

Labor force

14.687 million (2020 est.)

Labor force - by occupation

agriculture: 4.6%

industry: 23.5%

services: 71.9% (2014 est.)

Unemployment rate

28.53% (2019 est.)

27.09% (2018 est.)

Youth unemployment rate (ages 15-24)

total: 49.6%

male: 45.5%

female: 54.3% (2021 est.)

Population below poverty line

55.5% (2014 est.)

Gini Index coefficient - distribution of family income

63 (2014 est.)

63.4 (2011 est.)

Household income or consumption by percentage share

lowest 10%: 1.2%

highest 10%: 51.3% (2011 est.)

Budget

revenues: 92.86 billion (2017 est.)

expenditures: 108.3 billion (2017 est.)

Budget surplus (+) or deficit (-)

-4.4% (of GDP) (2017 est.)

Public debt

53% of GDP (2017 est.)

51.6% of GDP (2016 est.)

Taxes and other revenues

26.6% (of GDP) (2017 est.)

Fiscal year

1 April - 31 March

Current account balance

-$10.626 billion (2019 est.)

-$13.31 billion (2018 est.)

Exports

$93.01 billion (2020 est.) note: data are in current year dollars

$104.85 billion (2019 est.) note: data are in current year dollars

$110.07 billion (2018 est.) note: data are in current year dollars

Exports - partners

China 15%, United Kingdom 8%, Germany 7%, United States 6%, India 6% (2019)

Exports - commodities

gold, platinum, cars, iron products, coal, manganese, diamonds  (2019)

Imports

$77.86 billion (2020 est.) note: data are in current year dollars

$103.12 billion (2019 est.) note: data are in current year dollars

$108.91 billion (2018 est.) note: data are in current year dollars

Imports - partners

China 18%, Germany 11%, United States 6%, India 5% (2019)

Imports - commodities

crude petroleum, refined petroleum, cars and vehicle parts, gold, broadcasting equipment (2019)

Reserves of foreign exchange and gold

$50.72 billion (31 December 2017 est.)

$47.23 billion (31 December 2016 est.)

Debt - external

$179.871 billion (2019 est.)

$173.714 billion (2018 est.)

Exchange rates

rand (ZAR) per US dollar -

14.9575 (2020 est.)

14.64 (2019 est.)

14.05125 (2018 est.)

12.7581 (2014 est.)

10.8469 (2013 est.)

NOTE: The information regarding South Africa on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of South Africa 2022 information contained here. All suggestions for corrections of any errors about South Africa 2022 should be addressed to the CIA or the source cited on each page.