South Africa

The South African economy has been characterized by persistently slow growth against a complex background. The majority of the barriers to long-term growth that predate COVID-19 are most likely to continue for a medium- to long-term period. Growth and employment will be hindered as long as there is no meaningful action taken to address the productivity and investment constraints. Additionally, rising public debt and debt payment costs will continue to constrain public expenditure, restrict policy options, and stifle infrastructure investment, creating a significant barrier to more strong potential growth. As a result, in the medium run, economic growth is predicted to return to its pre-pandemic trajectory. According to the national treasury, growth would dramatically slow from 5.1 percent in 2021 to 1.8 percent in 2022, before dropping to 1.6 percent in 2023.