‘China’s economic downturn made it difficult for SA to improve its GDP’
This week the IMF released a report which places South Africa as the third largest economy on the continent.
JOHANNESBURG - Economist Lullu Krugel says while there are many contributing factors for South Africa's lower rating when compared to its peers on the continent, China's economic downturn has also made it difficult for the country to improve its GDP.
This week, the IMF released a report which places South Africa as the third largest economy on the continent, after being overtaken by Egypt.
Nigeria remains in the lead since it rebased its economy and GDP in 2014.
Krugel said, "Firstly, the significant depreciation that we've seen in the rand but more importantly, the South African economy has been growing much slower in the last couple of years. We've seen a period where we've managed to grow at around two to 2.5 percent."
She added that, "Slow growth, combined with the weak currency, a general loss of business confidence and foreign investment has resulted in South Africa losing out to Egypt."