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flag South Africa South Africa: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

South Africa is the economic giant of the African continent, contributing nearly 40% to the total African GDP. In the secondary sector, 75% of the biggest African companies are South African. Rebonding after the severe international economic crisis and enjoying the benefits of the organization of the World Football Cup in 2010, the South-African economy  has experienced a slight recovery in 2010, with an estimated growth at 3%, with an expectation of a speedier growth in 2011.

The government is mainly focusing on the construction of infrastructure, support of the industry, improvement of labor skills, on speeding up the agricultural reform and reducing criminality. After pursuing the policy of economic stimulus in 2010, the government is planning to tighten its budgetary policy in 2011 and reduce non-priority expenses in order to contain the deficit.

Unemployment, which affects nearly a third of the country's active population and AIDS (infecting nearly 12% of the population) are a cause for major concerns to the country's overall economic development. A third of the population continues to live below the poverty line and social inequalities remain high.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 283.98363.66e422.04443.29464.97
GDP (Constant Prices, Annual % Change) -1.72.83.4e3.64.0
GDP per Capita (USD) 5,741e7,2748,3428,6588,974
General Government Balance (in % of GDP) -4.8-4.5-3.7e-3.4-3.1
General Government Gross Debt (in % of GDP) 30.933.8e36.137.638.7
Inflation Rate (%) 7.1e4.35.9e5.05.0
Unemployment Rate (% of the Labor Force) 23.924.924.523.823.6
Current Account (billions USD) -11.50-10.11-11.62e-16.58-22.09
Current Account (in % of GDP) -4.1-2.8-2.8-4.8-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

South Africa has a subsoil rich in mineral resources. It is the world's largest producer and exporter of gold and platinum and the 5th largest producer of diamonds. The country produces 70% of the world's platinum and also has 60% of the world's coal reserves.

The country has diverse manufacturing industries and is a world leader in several specialized sectors, including railway rolling stock, synthetic fuels, mining equipment and machinery. The services sector is flourishing (almost two thirds of the GNP) and tourism should continue to grow after the stimulus it has received from the World Football Cup.  Agriculture only represents a small part of the GNP but employs 30% of the country's active population. South Africa is the 6th largest producer of wine in the world.

South Africa has a sophisticated financial structure with an active stock exchange that ranks among the world's top 20 in terms of market capitalization. Nevertheless, it has to be pointed out that the Rand weakened considerably during the financial crisis. Consequently, the South African government has put in place funds to support companies to guard against a higher depreciation.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 5.1 25.0 69.8
Value Added (in % of GDP) 3.0 31.3 65.7
Value Added (Annual % Change) -3.2 -7.2 1.3

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
South African Rand (ZAR) - Average Annual Exchange Rate For 1 USD 6.777.058.268.477.32

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about South Africa on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
62.7/100
Position:
Moderately free
World Rank:
68/179
Regional Rank:
4/45

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

South Africa is very open to international trade. The share of international trade in the country's GNP exceeded 64%, an increase of almost 20% over the last 4 years. The three top trade partners of South Africa are: the United States, Japan, and the European Union. Since the beginning of the world economic crisis, the country's exports remain weak, while import is steadily increasing, leaving the trade balance in deficit.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 78,71588,450100,53273,17294,040
Exports of Goods (million USD) 58,17569,78480,78261,67781,821
Imports of Services (million USD) 13,90016,12716,51514,39018,001
Exports of Services (million USD) 11,91213,49912,39411,65614,104
Imports of Goods and Services (Annual % Change) 18.39.01.4-17.45.5
Exports of Goods and Services (Annual % Change) 7.55.92.4-19.516.5
Imports of Goods and Services (in % of GDP) 32.534.238.628.327.1
Exports of Goods and Services (in % of GDP) 30.031.335.627.425.5
Trade Balance (million USD) -4,195-5,160-4,4485343,838
Trade Balance (Including Service) (million USD) -6,224-7,824-8,619-2,254-615
Foreign Trade (in % of GDP) 62.565.574.255.752.7

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
China 11.4%
United States 9.9%
Japan 9.0%
Germany 7.7%
United Kingdom 5.2%
See More Countries 56.8%
Main Suppliers
(% of Imports)
2010
China 14.3%
Germany 11.3%
United States 7.3%
Japan 5.3%
Saudi Arabia 4.0%
See More Countries 57.7%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Platinum, incl. palladium, rhodium, iridium,...Platinum, incl. palladium, rhodium, iridium, osmium and ruthenium, unwrought or in semi-manufactured forms, or in powder form 13.1%
Coal; briquettes, ovoids and similar solid fuels...Coal; briquettes, ovoids and similar solid fuels manufactured from coal 7.7%
Iron ores and concentrates, incl. roasted iron...Iron ores and concentrates, incl. roasted iron pyrites 7.6%
Ferro-alloysFerro-alloys 6.5%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.8%
See More Products 59.4%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 14.0%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.1%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 4.2%
Transmission apparatus for radio-telephony,...Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras and other video camera recorders; digital cameras 2.4%
Automatic data processing machines and units...Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 2.2%
See More Products 72.2%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Department of Agriculture
Department of Trade and Industry
Department of Minerals and Energy
Department of Public Enterprises
Statistical Office
Statistics South Africa
Central Bank
South African Reserve Bank
Stock Exchange
JSE Securities Exchange
South African Futures Exchange
Johannesburg Stock Exchange
Search Engines
Aardvark South Africa
WoYaa (website under construction)
Southafrica
Ananzi
Easy Info
M-web
Economic Portals
Economy watch

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Political Outline

Executive Power
President is both the chief of state and head of government. President is elected by the parliament (lower house), who usually happens to be the leader of the largest party, to serve a five-year term. President is the commander-in-chief of the armed forces, declares war or peace and appoints the Cabinet.
Legislative Power
South Africa has a bicameral legislature. The parliament's members are elected by popular vote under a system of proportional representation to serve five-year terms and National Council of Provinces (the upper house) having 90 seats, with 10 members elected by each of the 9 provincial legislatures for five-year terms.

The executive branch of government is directly or indirectly dependent on the support of the parliament, often expressed through a vote of confidence. President can dissolve Parliament if a majority of the members of the National Assembly seek its dissolution and at least three years have lapsed since the last election.

Main Political Parties
South Africa is a democratic but one-party dominant state with the ANC (African National Congress - a social-democratic political party formed by Nelson Mandela to fight apartheid) in power since 1994. Opposition parties are allowed, but are widely considered to have no real chance of gaining power.
Other important parties are:

•  African Christian Democratic Party (ACDP) - claims to represent "Bible believing Christians"

•  Inkatha Freedom Party (IFP) – advocates prevention of one-part state and social justice for all

•  Democratic Alliance (DA) – a liberal political party which officially opposes the ANC

•  South African Communist Party (SACP) – advocates communist ideology

•  United Democratic Movement (UDM) – advocates individual self-reliance, liberty and diversity

Current Political Leaders
President: Jacob ZUMA (since May 2009) – ANC
Executive Deputy President: Kgalema MOTLANTHE (since May 2009) - ANC
Next Election Dates
Presidential: 2013
National Assembly: 2014
National Council of Provinces: 2014
 

Indicator of Freedom of the Press

World Rank:
38/178
Evolution:
5 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
2/7
Civil Liberties:
2/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012