South Africa

South Africa – February 2022

South Africa has seen a marked decline in GDP growth rates since 2012, significantly lagging the African regional average. Political instability, fiscal and external liquidity constraints, weakness in the mining sector and high unemployment weigh on investment and growth. Nevertheless, South Africa outperforms most regional peers on measures of per capita income, creditworthiness and business climate.

The above chart is a cobweb diagram showing how a country measures up on four important dimensions of economic performance—per capita income, annual GDP growth, business climate rank and creditworthiness. Per capita income is in current US dollars. Annual GDP growth is the five-year average forecast between 2022 and 2026. Business climate is measured by the World Bank’s latest Ease of Doing Business ranking of 190 countries. Creditworthiness attempts to measure a country's ability to honour its external debt obligations and is measured by its OECD country credit risk rating. The chart shows not only how a country performs on the four dimensions, but how it measures up against other countries in the region.