Real GDP in South Africa

Taking into consideration how poorly the rest of the continent is doing, South Africa appears to be doing very well. Although, with a real GDP of $412 billion, the country still seems to be bringing in less than its overall potential. Early this century, GDP growth was about twice as large as it is currently. It seems that a partial explanation for this can be the effect of the downtrodden worldwide economy. Because of this, consumers fear the idea of making any serious investments. Also, government policies seem to be so tight-framed on the labor market that privatization ends up being a huge problem.

For the most part GDP per capita looks decent, at $9400. This is indeed the best number spanning throughout all African countries. The major issue is that the income-distribution is highly skewed and produces results that may only apply to half of the overall population. That is, as mentioned in the unemployment section of this document, the richest workers in the country are urban-dwelling, white men. Those living in rural areas may see very little of this average per capita. If 30% of the population provides for 70% of a country’s GDP, that leaves a huge remainder living near or below the poverty line.

Botswana’s GDP is only of fraction of South Africa. Yet, of the $12.4 billion GDP, its $7800 per capita is still comparable. Much like South Africa, unemployment and poverty are two altering factors of the per capita. Unlike South Africa, blue-collar workers account for much of the GDP. Farming is a considerable trade and demands many workers of ranging experience. So, although unemployment is high and jobs are somewhat scarce, those who do have the opportunity to gain work can survive with very little experience.

Interestingly, Zimbabwe has a GDP of $28 billion but a per capita of only $2450. Given the GDP and the population it doesn’t come as much of a surprise that the break-up of things gives such a small number. In fact, 60% of Zimbabwe’s population lives below the poverty line! That means that less than 40% of the citizens are making for most of the real GDP! With the despicable economic catastrophes currently devouring Zimbabwe, such as deficits and inefficiency with budgetary goals, it is unlikely that GDP will see any positive growth over the next decade!