OECD Economic Surveys: South Africa Economic Assessment

Author:
OECD
Publisher:
Organisation for Economic Co-operation and Development (OECD)
Publication Date:
15 July 2008
Tags:
South Africa, Economy, Business and Finance, Environment

The democratically elected government that came to power in 1994 inherited an economy wracked by long years of internal conflict and external sanctions. Against that backdrop, economic performance since 1994 has been impressive. In particular, the successive governments during that period have shown considerable prudence, refraining from resorting to economic populism in an effort to boost short-term growth. As a result, public finances were stabilised, inflation was brought down, foreign capital was attracted in growing amounts, and economic growth, after lagging for a time, improved. The awarding of the 2010 FIFA World Cup to South Africa is just one sign that South Africa is now seen as a stable, modern state, in many ways a model for the rest of the African continent. However, there have also been notable weaknesses in the economic record to date, especially as regards unemployment, inequality, and poverty.

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