Stimulating Economic Growth in South Africa

3361 Words14 Pages
Contents

Question 1

Introduction 3

Current Economic Climate 3

Trends in South African growth 5

How to encourage growth 6

Encouraging the Demand for Exports 6

Creation of Youth Unemployment Reduction Policies 8

Further Recommendations 10

Conclusion 11

References: 13

Introduction

africa' class='brand-secondary'>South Africa is facing the issue of slowing economic growth and the need to counter this by creating higher sustainable economic growth and in addition, the burden and constraint of increasing government debt. South Africa as a member of a global economy is also facing the problem of a global environment that is not conducive for growth, especially in emerging markets, as the demand for exports has weakened. This essay will discuss and weigh up the various policies that can be implemented whilst identifying the trends that have led to this economic climate in South Africa.

Current Economic Climate

During the late 2000’s, specifically in 2008, a financial crisis and global recession occurred. This was a result of a liquidity crisis in 2007. This 2008 financial crisis resulted in slowed economic growth in many of the world’s economies, including South Africa. One of the consequences of this financial crisis and global recession was that international trade declined and these also lead to increased unemployment and reduced commodity prices, mostly in emerging economies (CNNMoney.com, 2008). The decrease in international trade resulted (and continues to result in) a decrease in international demand for exports, including those of South Africa.

The current Economic climate from a South African perspective is that growth has recovered since the recession although it has not recovered to the levels achieved previ...

... middle of paper ...

.... Retrieved 28 April 2014, from http://www.tradingeconomics.com/south-africa/unemployment-youth-total-percent-of-total-labor-force-ages-15-24-wb-data.html

• ARORA, V., & RICCI, L. A. (n.d.). Unemployment and the Labor Market, Trends in Employment and Unemployment Since 1994 , Retrieved from https://www.imf.org/external/pubs/nft/2006/soafrica/eng/pasoafr/sach3.pdf

• IDC. (n.d.). About the IDC. Retrieved 29 April 2014, from http://www.idc.co.za/about-idc/overview

• Ortiz, A. (May 2014). Attracting and Retaining International Students in Canada. Retrieved 05 May 2014, from http://wenr.wes.org/2014/05/attracting-and-retaining-international-students-in-canada/

• Hausmann, R. (May 2008). Final Recommendations of the International Panel on ASGISA. CID Working Paper No. 161 , Retrieved from www.hks.harvard.edu/var/ezp_site/storage/fckeditor/file/.../161.pdf
Open Document