Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
Key economic indicators of South Africa- statistics & facts
South Africa is among the three largest economies on the African continent. The GDP per capita of the nation was significantly higher compared to 1986 and up to 2003, even though a decrease was recorded after 2018, which can be linked to the coronavirus (COVID-19) pandemic. The severity of the pandemic effects can be recognized even further in 2020 where the economy contracted by roughly 7 percent. It is worth noting that the service sector is the most dominant contributor to the country’s GDP.
In 2019, the labor force participation rate was slightly higher than 60 percent. Moreover, close to 33.6 percent of the labor force were unemployed in 2021. Among those with no occupation, Blacks/Africans were the most disenfranchised in the country's workforce as of the first quarter of 2022. In 2020, over half of the youth population were jobless. People in the formal non-agriculture sector had an average monthly salary of approximately 23.1 thousand South African rands in November 2020.
A trade deficit
Between 2009 and 2019, the trade balance has been consistently negative, with the imports outweighing the exports. This was at its highest in 2013, with a deficit of close to 30 billion U.S. dollars. This does not necessarily have a negative connotation to it. Due to comparative advantage, a certain country can produce a certain product at a lower cost, and so importing the product from that country while focusing on producing a more advantageous product would be more profitable. Additionally, South Africa’s leading import categories were mineral fuels, oils, and distillation products, while pearls, precious stones, metals, and coins were the principal export category. In 2020, the trade balance of South Africa was positive for the first time in the last decade.Controlling inflation and the job market
Since 1986, the inflation rate in the country has been dropping significantly, from over 18 percent to close to 4.55 percent in 2021. Inflation was at its lowest in 2004, standing at 1.43 percent, before rising again gradually in 2008, in sync with the global financial crisis. In 2016, the price index rose to 6.3 percent, due to weak demand along with uncertainty in the political future of the nation. Moreover, the consumer price index (CPI) of food products and non-alcoholic beverages, and CPI for alcoholic beverages and tobacco have been following more or less the same increasing trend.In 2019, the labor force participation rate was slightly higher than 60 percent. Moreover, close to 33.6 percent of the labor force were unemployed in 2021. Among those with no occupation, Blacks/Africans were the most disenfranchised in the country's workforce as of the first quarter of 2022. In 2020, over half of the youth population were jobless. People in the formal non-agriculture sector had an average monthly salary of approximately 23.1 thousand South African rands in November 2020.
The pandemic impact on businesses?
The coronavirus pandemic affected roughly a third of the South African businesses in terms of importing and exporting goods and services, while nearly nine out of ten businesses across several industries announced that their turnover was lower than the normal range. Furthermore, 36.4 percent declared that they were laying off workers as a response to the pandemic.
