The Long Term Potential Growth Rate Of South Africa Essay

The long-term potential growth rate of South Africa under the current policy environment has been estimated at 3.5%.Per capita GDP growth has proved mediocre, though improving, growing by 1.6% a year from 1994 to 2009, and by 2.2% over the 2000–09 decade, compared to world growth of 3.1% over the same period. The high levels of unemployment, at over 25%, and inequality are considered by the government and most South Africans to be the most salient economic problems facing the country. These issues, and others linked to them such as crime, have in turn hurt investment and growth, consequently having a negative feedback effect on employment. Crime is considered a major or very severe constraint on investment by 30% of enterprises in South Africa, putting crime among the four most frequently mentioned constraints. In the space of just two decades, South Africa has gone from being a international pariah, shunned because of its apartheid policies, to being an influential player in world affairs and a powerful advocate for global political and economic reform. This is according to the government s 20 Year Review, a report reflecting on South Africa s progress in reconstruction and development since 1994, and on the challenges facing the country as it enters its third decade of democracy. By 2012, the number of foreign diplomatic missions and international organizations in South Africa had increased to 315 - the second-largest number of diplomatic offices accredited to anyShow MoreRelatedTo what extent is reducing the number of people living in absolute poverty sufficient to achieve economic growth and development?1222 Words   |  5 Pagesin absolute poverty sufficient to achieve economic growth and development? 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