Answer to Question #190778 in Economics for Tshidi

Question

Compare and contrast South African government expenditure trends with other global economies 

over the past 10 – 15 years.

Answer 1

During 1970-2019. South African government spending in current prices increased by $ 72.5 billion (31.6 times) to $ 74.8 billion; the change occurred by $ 3.9 billion due to an increase in the population of $ 36.5 million, as well as by $ 68.6 billion due to an increase in government spending per capita by $ 1,170.7. The average annual growth in government spending in South Africa is $ 1.5 billion, or 7.3%. South Africa's government spending grew at a CAGR of 3.2% CAGR. The share in the world increased by 0.071%. The share in Africa increased by 7.5%. The minimum government spending was in 1970 ($ 2.4 billion). The maximum government spending was in 2011 ($ 82.7 billion).

During 1970-2019. government spending per capita in South Africa increased by $ 1,170.7 (11.9 times) to $ 1,278.0. The average annual growth in government spending per capita in current prices amounted to $ 23.9 or 5.2%.

The change in South African government spending is described by a linear correlation-regression model: y = 1.6x-3 207.5, where y is the estimated value of South African government spending, x is the year. Correlation coefficient = 0.934. Determination coefficient = 0.873.

South Africa's government spending in 2019 was $ 74.8 billion, ranked 30th in the world, and was on par with Iran's government spending ($ 75.3 billion). The share of government spending in South Africa in the world was 0.52%.

Government spending per capita in South Africa in 2019 was $ 1,278.0, ranked 100th in the world and was at the level of government spending per capita in Grenada ($ 1,348.3), government spending per capita in Malaysia ($ 1,334.8) government spending per capita in Thailand ($ 1,292.3), government spending per capita in Namibia ($ 1,284.5), government spending per capita in Santa Lucia ($ 1,252.0), government spending per capita in Guyana (1 $ 244.7), government spending per capita in Serbia ($ 1,225.0), government spending per capita in Bosnia and Herzegovina ($ 1,190.0). Government spending per capita in South Africa was less than government spending per capita in the world ($ 1,879.4) by $ 601.5.

Comparison of government spending in South Africa and its neighbors in 2019. Government spending in South Africa was 16.0 times higher than government spending in Zimbabwe ($ 4.7 billion), government spending in Botswana ($ 3.4 billion) was 22.1 times, government spending in Mozambique ($ 3.3 billion) was 22.6 times, government spending in Namibia (3.2 billion dollars) by 23.4 times, government spending in Lesotho (0.9 billion dollars) by 86.8 times. Government spending per capita in South Africa was 3.1 times greater than government spending per capita in Lesotho ($ 405.9), government spending per capita in Zimbabwe ($ 319.1) was 4.0 times, government spending per capita in Mozambique ( 109.2 dollars) 11.7 times, but was less than government spending per capita in Botswana (1,467.1 dollars) by 12.9%, government spending per capita in Namibia (1,284.5 dollars) by 0.51%.

Comparison of South Africa's government spending and leaders in 2019. South African government spending was less than US government spending ($ 2,995.1 billion) by 97.5%, Chinese government spending ($ 2,397.1 billion) by 96.9%, Japanese government spending ($ 1,016.5 billion) by 92.6%, government spending in Germany (788.7 billion dollars) by 90.5%, government spending in France (627.2 billion dollars) by 88.1%. Government spending per capita in South Africa was less than government spending per capita in Germany ($ 9,443.8) by 86.5%, government spending per capita in France ($ 9,311.9) by 86.3%, government spending per capita in the USA (9,101.8 dollars) by 86%, government spending per capita in Japan (8,012.3 dollars) by 84.1%, government spending per capita in China (1,671.9 dollars) by 23.6%.