‘SA is heading towards another lost decade’

Finance Minister Enoch Godongwana’s budget speech last month set its sights on a brighter economic future. The economy is expected to reach pre-pandemic GDP this year and, according to the budget, a R182-billion revenue windfall has set the economy on a better course — towards the end of fiscal consolidation.

This week, data from Statistics South Africa confirmed the economy’s modest rebound last year. According to the data, South Africa’s GDP grew 4.9% in 2021, driven mainly by higher economic activity in the finance, personal services and manufacturing sectors.

But analysts point out that the country’s GDP growth is still far too low to stave off unemployment and possibly another bout of social upheaval. It is likely that, after enduring more than 10 years of anaemic economic growth, South Africa may be staring down the barrel of another lost decade. 

Support the journalism that helps you navigate your world

Subscribe to the M&G today for just R30 for the first three months* to gain access to this story and all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Looking for another offer?

We make it make sense

If this story helped you navigate your world, subscribe to the M&G today for just R30 for the first three months

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Sarah Smit
Sarah Smit
Sarah Smit is a general news reporter at the Mail & Guardian. She covers topics relating to labour, corruption and the law.

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

Relief: Government must guard SA’s poor against inflation’s assault

It could prove difficult for government to loosen its grip on the public purse, but economists say the current extraordinary circumstances require intervention

Jesus wants to emulate boyhood hero Henry after sealing Arsenal...

The Brazil international revealed he was a big Arsenal fan as a youngster, having been captivated by Henry during the France star's successful spell in north London.

The best booze and chocolate pairings

On World Chocolate Day on 7 July, experience chocolate like never before, paired with your favourite adult drink

Eskom and unions reach wage agreement, workers back at work

The power utility warned that the system would take some time to recover because maintenance work had been postponed because of the unprotected strike
Advertising

press releases

Loading latest Press Releases…
×