Page 27 - TKZN Annual Report 2023/2024

Figure 2: South Africa’s annual GDP growth (%)
Source: The World Bank
South Africa’s relative global competitiveness has declined compared to peer countries, due to slower implementation of reforms. In 2022, South Africa was ranked 53rd which is significantly below other BRICS countries such as China (9th) and Brazil (25th). The government has run large budget deficits since the global financial crisis in 2008/09, resulting in an increasingly unmanageable mountain of accumulated debt. Increased government borrowing has unfortunately failed to equate to effective government spending. South Africa has experienced one of the highest increases in debt to GDP ratio amongst peer nations over the last ten years.
Figure 3: SA’s general gross debt (as % of GDP)
Source: International Monetary Fund (IMF)
Of course, a contracting economy means contracting income for government. The current account deficit widened to 2.3% in the fourth quarter of 2023 from 0.5% in the third quarter. This reflects marginally stronger import growth and low export demand, and generalised slowdown of growth across the globe.
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