Analysis by Region - Emerging Markets - South Africa

Analysis by Region - Emerging Markets - South Africa

We forecast weak economic growth for South Africa in 2023, amid numerous domestic challenges, chief of which is loadshedding, and global economic headwinds. The incessant power outages are weighing on economic activity and exacerbating price pressures. Economic growth has been volatile, as a result, with more than half of South Africa's economic industries still performing below pre-pandemic levels. Regardless, the current economic environment is not one in which any meaningful economic growth can occur. Stagflation risks remain elevated, with high unemployment and a weakened exchange rate only dampening the outlook.