Business Operating Environment Perspective 2023, Enabling net zero through a green workforce in Africa. Johannesburg, 28 June 2023 PwC South Africa is pleased to share its sixth South Africa Economic Outlook report for 2023. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds. Each challenge requires business leaders to respond with the right mindset and risk approach. "The major drive to mitigate the impact of load shedding is stimulating some areas in the economy, for example solar component suppliers, electricians etc," added Kruger. Text is . The country's GDP growth is projected to trend around 1.82% in 2024 and 1.6% in 2025, according to IMF econometric models. Download all data featured on World Economics in a simple and consiatant format. retrieved from FRED, The latter includes a one-year tax relief, estimated to be up to R13 billion,26not only to reduce pressure on the national power grid and increase electricity supply but also to support the transition to clean energy. SA Tourism shows slight recovery after COVID-19 pandemic. In January, the South African central bank announced a GDP growth forecast of 0.3% for the year, against 2% in 2022. . This energy investment will bring with it more green jobs. All quotes delayed a minimum of 15 minutes. If we order the countries according to their GDP per capita, South Africa is in 51th position. Increased social media chatter about sustainability topics. This quarter the economy probably contracted 0.7% in year-on-year seasonally-adjusted terms, but a recovery of 0.5% was expected in the third quarter followed by 1.1% growth in the final quarter, the poll showed. Backlinks from other websites and blogs are the lifeblood of our site and are our primary source of new traffic. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Billed annually at $131.40. Real GDP forecast, Annual growth rate (%), 2024. Income inequality, 0 = complete equality; 1 = complete inequality, latest available year, Air and GHG emissions, Carbon dioxide (CO2), latest available year, Gross domestic product (GDP), US dollars/capita, 2022 {{contentList.dataService.numberHits}} {{contentList.dataService.numberHits == 1 ? News24, Ramaphosa directs Transnet to sort out logistics crisis, March 28, 2023. Simply select text and choose how to share it: Email a customized link that shows your highlighted text. Africas most industrialised nation is facing rolling electricity blackouts, high unemployment and interest rates, as well as growing social unrest due to soaring costs of living. South Africa's data is highlighted in the table below, use the filter and sort order options to allow easy comparison with other countries. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Find all indicators on Innovation and Technology. Evolution: GDP growth rate at constant prices South Africa, South Africa GDP - Gross Domestic Product, less than the same period last year, when it was, Subscribe to our free email alert service, South Korea - GDP - Gross Domestic Product, More June passenger car were sold in Brazil, Industrial Production goes down 0.9% in May of 2023 in Germany, Industrial Production goes down -6% in May of 2023 in Belgium, Industrial Production increases up to 1.4% in May of 2023 in Czechia, Industrial Production goes down 7.8% in May of 2023 in Denmark, In May of 2023, Industrial Production fell in Norway, In June of 2023, Producer price fell in Serbia, Producer price goes down -0.9% in June of 2023 in Mexico, More June passenger car were sold in Mexico, Industrial Production goes up in May of 2023 in Bulgaria, In May of 2023, Industrial Production went up in Hungary, In May of 2023, Industrial Production went up in Luxembourg. The Network's industry and economics expertise allows us to bring sophisticated analysis to complex industry-based questions. This rate is 15 The marchers chanted struggle songs as they made their way across the busy streets of Johannesburg. Six industriesmost notably construction, mining, and manufacturingare still lagging behind prepandemic levels of output (figure 1).3. The gross domestic product (GDP) measures of national income and output for a given country's economy. Link Copied! For example, rolling blackouts have cost Spar more than 700 million rand ($38.3 million) in diesel for generators over six months and the retailer warned of much higher spending if the power situation deteriorates. The municipal amendment act is an anti-thesis of democratic governance, one told Al Jazeera. The country could already be in a technical recession in Q1 2023 (defined as two consecutive negative quarters of growth). 2024: 1.82446 (+ more) Updated: Apr 17, 2023 2024: 1.82446 : 2023: 0.10366 : 2022: 2.04230 : 2021: 4.91308 : 2020: -6.34246 : View All . How we can help with strategies to address these challenges. As Africas most industrialised nation implements its post-COVID-19 economic recovery strategy, it is bedevilled by rolling electricity blackouts, high unemployment and interest rates, as well as growing social unrest due to soaring costs of living. Organisation for Economic Co-operation and Development (OECD), Snapshot of data for a fixed period (data will not change even if updated on the site). Lookingto stay on top of the latest news and trends? GDP growth is projected to slow to 0.3% in 2023 before picking up to 1% in 2024. The official estimate for South Africa's GDP was $807 billion at the end of 2022 in puchasing power partity terms. We have provided a few examples below that you can copy and paste to your site: Your image export is now complete. However, the transition to a green economy requires organisations to take a proactive and intentional approach towards developing a green workforce. Christie Viljoen, PwC South Africa Senior Economist, says: Upskilling is about more than just providing access to training. 2019 Environmental, Social & Governance Indexes, Data for individual countries by using country lists, 1 Ivory Square, Plantation Wharf, London, SW11 3UE. Data in this graph are copyrighted. The United States has repeatedly referred to a senior Chinese central banker as the head or acting head of the People's Bank of China (PBOC) in recent days, appearing to confirm his expected elevation to the top post. The South African economy continues to recover from the effects of the COVID-19 pandemic, albeit more slowly than expected, with growth estimated at 1.9% in 2022. South Africa has a quarterly GDP per capita, of 1,474$1,474, less than the same period last year, when it was 1,567 $1,567 . Forecast. This page was last edited on 8 July 2023, at 15:18 (UTC). See here for a complete list of exchanges and delays. This is despite an average annual increase of 4.5% in consolidated expenditure over the next three years. This debt-relief arrangement will see the government take on more than 50% of Eskoms debt over three years, to free up resources for the utility to unbundle and invest in new power-generation capacity and maintenance activities, although based on strict conditions. According to the IMF, South Africa's GDP is expected to grow only by 1.1% in 2023, a minimal number. Use this code to embed the visualisation into your website. At the Johannesburg protests, Duncan Luvuno, COSATUs second deputy president said workers have to cover increases in medical aid expenses, bank loans, transportation and food prices. The need for green skills as traditional jobs change; Social risks linked to the impact of load-shedding on food security; The impact of artificial intelligence (AI) on businesses; and. June 13, 2023 Publications IMF Executive Board Concludes 2023 Article IV Consultation with South Africa June 6, 2023 Press Releases BusinessTech, The R-word hangs heavy over South Africa, March 23, 2023. Sustainability focus: Responding to social media chatter about companies' sustainability attributes. We are seeing increased social media chatter about sustainability topics for example, environmental matters and social issues. . Data source: World Economics Research, London, NEW ESTIMATES FOR GROSS DOMESTIC PRODUCT IN PPP INT$ ADJUSTED FOR BASE YEAR AND INFORMAL ECONOMY. Sustainability focus: Responding to social media chatter about companies sustainability attributes. Economic activity in South Africa is set to weaken further in 2023 (0.5% annual growth) as the energy crisis deepens, while the growth recovery in . StatsSA, Manufacturing: Production and sales (preliminary), January 2023. A primary budget surplus is still expected for 202324. Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices. There are valid concerns about the impact of AI on the job market. For Selina Khosa, shop steward and member of the South African Commercial, Catering and Allied Workers Union, another COSATU affiliate, the electricity crisis is causing damage to businesses and contributing to increased crime rates. Increased social media chatter about sustainability topics. The growth of the real gross domestic product in South Africa was forecast to increase between 2023 and 2028 by in total 1.3 percentage points. Gross domestic product (GDP) in Africa's most industrialized economy expanded 2.0% last year and the most pessimistic forecast in the poll was for a 0.8% contraction this year, while the most optimistic expected a 0.9% expansion. Herman van Papendorp and Sanisha Packirisamy said negative political developments, increased load-shedding, and policy uncertainty would hamper growth. 02:07 - Source: CNN. However, our Africa Business Agenda: South African Perspective 2023 shows that local business leaders are more cautious about workforce management than their global counterparts, and more likely to protect current jobs. After contracting by a revised 1,1% in the fourth quarter of 2022, real gross domestic product (GDP) edged higher in the first quarter of 2023 (JanuaryMarch), expanding by an estimated 0,4%.1 The manufacturing and finance industries were the major drivers of growth on the supply side of the economy. Stats. South Africa GDP - Historical Data; Year GDP Per Capita Growth; 2021: $419.02B: $7,055: 4.91%: 2020: $337.62B: $5,742-6.34%: 2019: $388.53B: $6,689: 0.30%: 2018: $404.16B: $7,049: 1.52%: 2017: $381.45B: $6,734: 1.16%: 2016: $323.59B: $5,735: 0.66%: 2015: $346.71B: $6,205: 1.32%: 2014: $381.20B: $6,965: 1.41%: 2013: $400.89B: $7,441: 2.49%: 2012 . At present, businesses around the world are grappling with the impact of AI on their activities. This requires that the remaining deficiencies are addressed in a clear and consistent manner. Complete terms of use and contact details are available here. Significant progress has already been made in addressing some of the concerns highlighted by the FATF.24. Marais joined Deloitte Africa in 2015 through acquisition, after being a founding member of Frontier Advisory. While this is not expected to have permanent effects on the growth outlook, it could imply potential risks such as reputational damage, increased transaction costs for businesses (already faced with an environment of high input costs), and negative impact on foreign flows, posing additional burden on the already struggling economy. However, economic growth is meagre at present, registering only 0.2% q-o-q in 2023Q1. South Africa Reserve Bank (SARB), Statement of the Monetary Policy Committee, press release, January 26, 2023. The Rugby Championship fixture list has been cut from six games to three to allow for World Cup warm-up matches. Economic growth: We are not in a recession, and private sector energy investment is improving the outlook for 2024. This will place greater pressure on middle-class consumers and soften consumer demand, with tighter lending conditions dampening investment decisions and hiring for firms, and ultimately the growth outlook. Momentum Investments expects South Africa's GDP growth to slow to 1.1% in 2023 against the backdrop of poor global growth and local headwinds. Union officials said the law bars municipal employees, who are COSATU members, from joining community meetings within the municipality and said it was meant to limit bargaining power. to receive more business insights, analysis, and perspectives from Deloitte Insights. Besides prioritizing a swift resolution of the countrys electricity crisis, avoiding the risks of slow growth for longer will require urgent action in eradicating inefficiencies at notable state-owned entities, especially in the transport and logistics sector, while hastening the implementation of much-touted growth-enhancing structural reforms. Find out how good a country could be if it upgraded it's GDP data. The GDP value of South Africa represents 0.18 percent of the world economy. This figure is based on the key assumption of more than 250 days of loadshedding, and with longer blackouts, for 2023, which, the SARB believes, will likely shave off up to two percentage points of GDP growth this year.9The bank marginally revised down the growth outlook to 0.2% at the end of March.10. The GDP figure in the first quarter of 2023 was 89,358 $83,278 million, South Africa is number 29 in the ranking of quarterly GDP of the 53 countries that we publish. Please check your download folder. The private investment currently seen and planned in alternative electricity supply is significant: Operation Vulindlela is tracking a pipeline of 10,000 MW in private sector energy generation projects, up from 4,000 MW reported a year ago. Reprinted with permission. Artificial intelligence (AI): Key questions answered about business and AI. Masego Ntsoane is a research consultant within the insights team at Deloitte Africa. The positive impact this will have on power supply in the country and on individual business operations makes for a more positive economic growth outlook for 2024. Releases from International Monetary Fund, More While markets and economists expected an increase of 25 basis points (bps), the bank deemed the risks to inflation to be on the upside, with food price inflation as well as core goods inflation expected to be higher than previously anticipated this year. With MyDeloitte you'll nevermiss out on the information you need to lead. Meanwhile, the ANC hosted a meeting with a rival labour union, the South African National Civic Organisation, on Thursday, as part of efforts to help the group resolve its internal leadership disputes and join the party as an ally in the 2024 national elections. Summary. White label accounts can distribute our data. While there are still many questions and uncertainties surrounding the stability, security and reliability of generative AI, it marks the beginning of a period of experimentation, integration and adoption that will play out across the South African economy. However, our Africa Business Agenda: South African Perspective 2023shows that local business leaders are more cautious about workforce management than their global counterparts, and more likely to protect current jobs. "We expect real GDP growth to slump to 0.5% in 2023, reflecting a sharp slowdown in the global economyparticularly in the U.S. and Europealongside serious domestic constraints, topped by sustained electricity shortages, which are disrupting business operations on a daily . Data are in current U.S. dollars. This means understanding evolving skills gaps and mismatches, creating the right employee experience and buy-in to unleash energy for change, and developing engaging skills-development programmes.. Economic Outlook Note - South Africa. If these challenges persist, the economy will continue to struggle, particularly in 2023. With their fingers on the pulse of business developments via social media, PwC research shows that South African consumers are willing to pay more than the average price for a product that promotes sustainability considerations. International Monetary Fund, Release: The year 2022 alone saw 200 days of loadsheddingwith Q4 2022 being the worst on record (only two no-loadshedding days in the quarter of 92 days). Furthermore, employment still running below prepandemic levels and elevated poverty and inequality are causes of concern in terms of social stability for a country going into an election year (national elections are due in the second quarter of 2024). The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. JOHANNESBURG, June 15 (Reuters) - South Africa's economy will grow a modest 0.3% this year, softened by a mild contraction this quarter, but will gain just enough momentum in coming. International Monetary Fund, GDP per capita (current US$) - South Africa from The World Bank: Data Copy a customized link that shows your highlighted text. South Africa Economic Outlook | June 2023 - Responding to five polycrisis challenges, Media and Communications Specialist, PwC South Africa, Integrated Content Lead, PwC South Africa. Investec's Lara Hodes wrote in a note that the electricity supply predicament continued to weigh heavily on costs, reducing profitability, while consumers remain financially constrained dealing with high inflation and interest rates. Social risk is a frequent topic of conversation in South African boardrooms and, at present, the adverse impact of load-shedding on food security and the cost of living is an important part of the story. However, Kruger added the GDP growth rate in 2023 would most probably be below population growth (around 1.2%-1.3%), which suggests South Africans will on average be poorer on a per capita basis. As such, it is not surprising that the unemployment rate increased from 32.7% in 2022Q4 to 32.9% in 2023Q1. The GDP figure in the first quarter of 2023 was 89,358$83,278 million, South Africa is number 29 in the ranking of quarterly GDP of the 53 countries that we publish. Specifically, business leaders need to put in place the right strategies to deal with these challenges. See something interesting? The SARB has increased its GDP forecast modestly for the South African economy to 2.0%, from 1.7% for 2022 as the Q1.22 GDP print surprised on the upside. The Gross Domestic Product (GDP) in South Africa was worth 405.87 billion US dollars in 2022, according to official data from the World Bank. Federal Reserve Bank of St. Louis; The industry leader for online information for tax, accounting and finance professionals. While debt levels, following previous years revenue windfall, were expected to stabilize as early as 202223, this is now only expected to occur in three years time, at 73.6% of GDP in 202526.21This also makes the countrys public debt-to-GDP ratio one of the highest among emerging markets.22, Taking on the debt of the struggling utility will also see a rise in the debt-service costswhich remains among the fastest-growing expenditure items in the countrys budget in the medium term, while continuing to crowd out other expenditure.23. StatsSA, Mining: Production and sales (preliminary), January 2023. In the immediate term, the growth outlook for South Africa is bleak, and a scenario of flat to no growth is a real possibility for 2023 (figure 2). Social login not available on Microsoft Edge browser at this time. The protesters also went to the offices of the South African Local Government Association and Premier of Gauteng province David Makhura, to request the removal of the Municipal Systems Act which delineates the powers of local municipalities. Statement of the Monetary Policy Committee. The Trading Economics Application Programming Interface (API) provides direct access to our data. Sarb sees no effects from US banks turmoil, Ramaphosa directs Transnet to sort out logistics crisis, Europe Middle East Africa (EMEA) Economics, Standard terms for the provision of goods and services to Deloitte & Touche. The gross domestic product in current prices in South Africa was forecast to continuously increase between 2023 and 2028 by in total 69.5 billion U.S. dollars (+17.42 percent). We have a plan for your needs. We look at: Lullu Krugel, PwC South Africa Chief Economist, says: South African businesses need to respond to five key challenges right now: the weak economy, changing jobs landscape, social risks, technological change, and sustainability considerations. SARB, Statement of the Monetary Policy Committee, press release, March 30, 2023. International Monetary Fund (IMF), South Africa: Staff concluding statement of the 2023 Article IV Mission, March 22, 2023. OVERVIEW South Africa's economy grew by an estimated 2.5 per cent in 2022 - an upward revision from 1.9 per cent in the 2022 Medium Term Budget Policy Statement (MTBPS). Together with business-continuity issues (loadshedding, most prominently) this is likely to impact margins and profitability of the private sector in the coming months, which could see spillovers to the fiscus, for example, through lower corporate income taxes. Simply link your email orsocial profile and select the newsletters and alerts that matter most to you. Sub-Saharan Africa Regional Economic Outlook, Units: Of concern has also been the heightened risk profile of economies, such as South Africa, that need foreign capital to finance the increasing current account deficit, given tighter lending conditions globally.19. The latest GDP data shows that South Africa is not in a recession. JOHANNESBURG, May 24 (Reuters) - Africa's economic growth is set to edge upwards in 2023 and 2024 amid tighter global monetary policy and the fallout from Russia's invasion of Ukraine, but. For personalized content and settings, go to you My Deloitte Dashboard. It allows people to move to new jobs that are better and more future-proof, and helps preserve a nations taxation revenues and reduce social safety net expenses. South Africa GDP. Trading Economics welcomes candidates from around the world. Q1 2023 has proven to be worse: only one day of no loadshedding and longer blackouts.4 This has translated into lower mining (1.9%)5 and manufacturing production (3.7%)6 for January 2023 when compared on a year-ago basis. Over the past year, the South African economy has faced a series of global and local disruptions, including slowing global growth, geopolitical tensions, acute power challenges, inefficiencies in state-owned enterprises, and climate change, among others. And with that, green jobs are growing at a significant pace. The government has also continued with programs such as Operation Vulindlela to drive reforms and introduced rooftop solar incentive programs for households and broadened those for businesses. South African gross domestic product (GDP) expanded by 1,9% in the first quarter of 2022, representing a second consecutive quarter of upward growth.1 The size of the economy is now at pre-pandemic levels, with real GDP slightly higher than what it was before the COVID-19 pandemic.
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