Answer to Question #221016 in Macroeconomics for jordan

Question

Give an overview of the South African economy showing the trends in the past decade

Answer 1

The real GDP growth South Africa during 2019 was 0.2%. COVID-19 as well as containment intiatives over curbing the virus lead to the economy's decline. Due to the effect, the Real GDP in 2020 reduced by about 8.2%, the outcome resulted to adverse effects within communication, transport and construction sector as well as mining and manufacturing. Considering demand section, every factor declined, with investment recording 32.4%. On the demand side, all components declined, with the largest contraction, 32.4% recorded in investment. Contrary, budget deficit tends to be estimated to increase by 14% of GDP, because of installing more pressure to control economic effect of COVID-19. In 2020, the nation recorded a surplus of 1% of the GDP based on the high gold price it was exporting, fuel imports' low bill as well as raised agricultural exports.