South Africa GDP History and Future: Year Wise GDP Growth of South Africa

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South Africa GDP

Based on official data from the World Bank, South Africa’s GDP (gross domestic product) is estimated to be worth 399 billion US dollars in 2023. 0.17% of the global economy is represented by South Africa’s GDP.

The third quarter of 2023 saw a 0.7% year-over-year decline in South Africa’s GDP, which contrasted with market expectations of a 0.2% decline and a downwardly revised 1.5% increase in the preceding three months. Due mostly to ongoing power outages and logistical challenges, it is the first economic downturn since the first quarter of 2021.

If you are interested in knowing more about South Africa’s GDP, its current status, history, and future then we would urge you to read this post.

What is the meaning of GDP?

The gross value added (GDP) of all resident producers in the economy is the total of all product taxes plus any additional subsidies not factored into the product value. It is computed without accounting for natural resource depletion and degradation or the depreciation of artificial assets.

GDP, measured at purchaser’s prices, is the total of the gross value added by all of the country’s resident producers, plus any product taxes and less any subsidies that aren’t factored into the product value. It is computed without accounting for natural resource depletion and degradation or the depreciation of artificial assets. In current US dollars, the data are presented.

The official exchange rates for a single year are used to convert domestic currencies into dollars for GDP calculations. In certain nations, an alternate conversion factor is employed when the official exchange rate does not accurately represent the rate that is applied to real foreign exchange transactions.

South Africa GDP Overview

South Africa GDP History and Future

Prior to Nigeria overtaking it in 2014, South Africa was the largest and most developed nation in Africa. With services making up roughly 73 percent of the GDP, they are the largest economic sector.

According to present policy settings, South Africa’s potential long-term growth rate is anticipated to be 3.5%. While increasing, per capita GDP growth has been unimpressive, growing by 1.6% annually between 1994 and 2009 and by 2.2% over the 2000–09 decade in contrast to the 3.1% global growth during the same period.

Due to persistent energy and transportation constraints, South Africa’s GDP is only predicted to expand by 0.5% in 2023. However, it has been predicted that between 2023 and 2028, South Africa’s GDP will grow steadily by a total of 78.1 billion US dollars (+20.5 percent) at current prices. The GDP is predicted to hit a new peak in 2028, valued at 459.02 billion US dollars, following the fifth year of growth.

South Africa GDP Current Status

In Q3 of 2023, the South African economy contracted by 0.2% quarter on quarter following a downwardly revised 0.5% increase in Q2 and worse than market expectations of a 0.1% decline. The primary causes of this contraction were ongoing rotating load shedding, logistical challenges, and the difficult international climate.

Five out of the ten economic activity had decreases; the three that contributed most significantly to the overall poor performance were manufacturing (-1.3%), construction (-2.8%), and agriculture (-9.6%). In terms of spending, private consumption fell by 0.3% and fixed investment shrank by 3.4%, but government spending increased by 0.3%.

Year Wise GDP Growth of South Africa

The most significant categories of services aiding in GDP growth of South Africa are real estate, banking, and business services (21.6%), government services (17%), wholesale, retail, and automotive trade, catering, and lodging (15%), and transportation, storage, and communication (9.3%). The manufacturing sector makes up 13.9 percent, followed by mining and quarrying at 8.3 percent and agriculture at just 2.6 percent.

In the table below we have provided the past 5 years GDP Growth rate of the nation.

A number of factors have contributed to South Africa’s decline relative to other emerging markets, like China and India: the nation is small and lacks the benefit of a sizable domestic consumer base; saving and investment rates have been unusually low for decades, in part due to low disposable income; and a poor education system has left the country severely short-staffed in qualified labor.

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