South Africa’s economy is expected to shrink by 7.8% this year after this pandemic that has devastated the GDP and its growth. This news has been released by the National Treasury in its Medium-Term Budget Policy Statement on Wednesday. GDP growth is expected to 3.3 % in 2021, and to average 2.1 % over the medium term. Based on this analysis, the economy will only recover to 2019 levels in 2024. This fall has made the recovery of South Africa’s economy more complicated.
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Over the past 10 years, real GDP growth averaged 1.4 %, while the population grew by 1.6 % per year. Now there is a need to implement a national consensus through a social compact that addresses both short- and long-term structural growth challenges.
Data source: All Africa news