Economic Growth in South Africa

As already mentioned, the current GDP growth rate is about 2.6%. It does indicate a positive growth rate, but the fact of the matter is that it is actually at a decade low. Population is increasing by about 0.02% due to the nature of birth rates compared to death rates, so in essence, the current economy cannot grow significantly on these mild population growths. Then again, technology is greatly beginning to pick up, with many communications networks and well-demanded natural resources. A reasonable explanation for the current slowing is the state of the economy worldwide and the recession that took place in the early 90’s. Investors are still very hesitant to commit to stocks and trades.

Also mentioned earlier, unemployment is creating a huge problem on economic growth. There are millions of people who are looking for work, and despite their efforts there isn’t work to be found, based on educational status. Many of the available jobs go unfilled since there may not be anyone of that particular area of expertise to get the job done. Businesses end up going bankrupt and stop contributing to the GDP. Urban technical industries are usually able to employ individuals to fill their positions, so as to create somewhat of a balance. Thus, GDP growth takes place in very small increments.

Botswana’s GDP growth appears to be about a percent higher than that of South Africa, 4.7%. Its economy has seen some positive progress within the past decade. The CIA world factbook finds that it is ranked as best credit country within the African continent. Also, mining diamonds has been a very marketable industry and provides for almost a third of the entire GDP. Every year the industry shows signs of growing strength. Still, its growth doesn’t seem to be too down-weighted by unemployment, since its growth is constantly positive.

Zimbabwe, on the other hand, happens to be experiencing a very fragile economic growth status. It is actually feeling the impacts of a negative (-6.5%) GDP growth. With the colossal deficits that are weighing the country down, there is not much room for improvement. That is, with soaring unemployment rates and even higher inflation rates, producers are unable to provide as much at opportune costs and consumers are unable and/or unwilling to pay.