![FocusEconomics [ES]](https://static.focus-economics.com/app/uploads/sites/5/2022/08/logo.svg){kind=logo}
South Africa economic overview
Regional heavyweight:
South Africa is one of the wealthiest countries in Africa in GDP per capita terms. Moreover, South Africa's industrial sector is relatively well-developed compared to other African countries, contributing over 10% of GDP. Key manufacturing areas include automotive, machinery, mining equipment, textiles, and processed foods.
Mining strength:South Africa is rich in natural resources, with significant reserves of gold, diamonds, platinum, coal, and iron ore. While the mining sector's contribution to GDP has declined in recent years, it remains an important source of export earnings.
Dynamic demographics:The population is currently growing by 1–2% per year and is forecast to rise by around five million between 2022 and 2027. While this boosts the size of the domestic market, boding well for private consumption, it also brings challenges relating to providing sufficient jobs and avoid bouts of social instability.
Multiple economic challenges:South Africa grapples with significant challenges, including high unemployment, poverty, and inequality, with the latter still marked by the legacy of apartheid. Additionally, issues like crime, corruption, and political uncertainty have an impact on the investment climate and economic stability. Moreover, in recent years, the country has suffered from frequent power disruptions and rolling electricity blackouts (known locally as load shedding), which have weighed on economic activity.
South Africa's economic outlook:The economy is forecast to grow far more slowly than the regional average in the coming years. Although this is partly due to a more limited scope for rapid catch-up growth compared to many other SSA economies, given South Africa's relatively higher GDP per capita, it is also a consequence of the country's multiple structural weaknesses. Deep reforms to improve the power supply, reduce sky-high unemployment, improve the transport system and reduce inequality will be required to substantially improve South Africa's growth potential.
South Africa's economy in numbers:
Nominal GDP of USD 405 billion in 2022.
GDP per capita of USD 6,681 compared to the global average of USD 10,589.
Average real GDP growth of 1.1% over the last decade.
Economic structure:
In 2021, services accounted for 73% of overall GDP, manufacturing 12%, other industrial activity 13%, and agriculture 2%. Looking at GDP by expenditure, private consumption accounted for 61% of GDP in 2021, government consumption 19%, fixed investment 13%, and net exports 7%.International trade:
In 2020, manufactured products made up 38% of total merchandise exports, mineral fuels 8%, food 12%, ores and metals 31% and agricultural raw materials 2%, with other categories accounting for 9% of the total. In the same period, manufactured products made up 66% of total merchandise imports, mineral fuels 14%, food 8%, ores and metals 3% and agricultural raw materials 1%, with other goods accounting for 8% of the total. Total exports were worth USD 123 billion in 2022, while total imports were USD 109 billion.Economic growth:
The economy recorded average annual growth of 1.1% in the decade to 2022. To read more about GDP growth in South Africa, go to our dedicated page.
Fiscal policy:
South Africa's fiscal deficit averaged 4.9% of GDP in the decade to 2022. Find out more on our dedicated page.
Unemployment:
The unemployment rate averaged 27.9% in the decade to 2022. For more information on South Africa's unemployment click here.
Inflation:
Inflation averaged 5.2% in the decade to 2022. Go to our South Africa inflation page for extra insight.
Monetary Policy:
South Africa's monetary policy rate ended 2022 at 7.00%, up from 5.00% a decade earlier. See our South Africa monetary policy page for additional details.
Exchange Rate:
From end-2012 to end-2022 the rand weakened by 50% vs the U.S. dollar. For more info on the rand, click here.
50 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 28 expert analysts.
Want to get insight on the economic outlook for South Africa in the coming years? FocusEconomics collects projections out to 2033 on 50 economic indicators for South Africa from a panel of 28 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the South Africa economy. To download a sample report on the South Africa's economy, click here . To get in touch with our team for more information, fill in the form at the bottom of this page .
Sudáfrica Datos económicos
Q&A:
Is South Africa facing an economic crisis?
What is the main economic system of South Africa?
Is South Africa doing well economically?
South Africa is not currently experiencing a full-blown economic crisis, but it is facing significant economic challenges that could lead to one if they are not addressed. These challenges include high unemployment, inequality, frequent power outages, infrastructure crises affecting ports and railways, and climate change vulnerability. The economy has also been slow to recover from the COVID-19 pandemic.
South Africa has a mixed economic system, characterized by a blend of private enterprise and government intervention. The private sector plays a dominant role in the economy, but the government also maintains a significant presence through ownership of state-owned enterprises and regulation of various industries.
South Africa's economic performance is varied; the country has a sizeable economy by Sub-Saharan African standards and upper-middle-income status but is burdened by high unemployment, inequality, and a weak currency. Despite a stable financial system and a growing services sector, slow and uneven economic growth and limited foreign investment indicate that its overall economic health is not robust.