South Africa’s Economy Essay

South Africa's Economy Essay

It is essential to mention that South Africa seems to demonstrate a positive economic growth in the current decade. The specialists of the World Bank stated that the economic growth has replaced the long-term period of stagnation. Evidently, the numbers are not very impressive. Thus, the South African GDP could increase by 1%. Nevertheless, this change is very inspiring due to the fact that the economics of this region was in deep crisis for dozens of years. At the same time, the South African government is quite optimistic regarding the forecasting of the economic growth in the further twenty years. The National Developmental Plan implies the 6% growth in 2030. The conviction in this trend is supported by the fact that the demographic indicators continue being positive. Simultaneously, the consumer’s ability to buy the middle-class products also increases. It means that the government receives a unique chance to optimize the strategy of taxation and stimulate the development of the new markets. For instance, tourism becomes more and more popular as a result of the struggle against the security issues. Unfortunately, the life expectancy in the country is relatively low: 59 years for men and 63 years for women. The government tries to solve this problem with the help of the job places creation. It helps to decrease the number of poor people, who engage in criminal activities.

It seems fair to state that it is a risky decision to invest in some business project in South Africa. The risks are mostly connected with the political uncertainty in the region. The current stability is temporary due to the existence of the social pressure, which is based on the earlier apartheid policies. There is no doubt that the gap between the classes continues being very big today. Consequently, any business project has to be based on the rational analysis of the industry. It is obvious that the investments in tourism are very perspective due to the high number of tourists from the UK and the U.S. Accordingly, the further development of the country mostly depends on the international economic situation and the local political stability.

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