South Africa GDP History and Future: Year Wise GDP Growth of South Africa

Please read this article to learn a great deal about South Africa. GDP’s Past and Future: South Africa’s GDP Growth by Year

South Africa GDP

South Africa’s GDP (gross domestic product) is projected to reach 399 billion US dollars in 2023, according to official World Bank data. The GDP of South Africa represents 0.17% of the world economy.

South Africa’s GDP shrank by 0.7% year over year in the third quarter of 2023, compared with 0.2% decline and a downwardly revised 1.5% increase in the previous three months, as predicted by the market. It is the first economic downturn since the first quarter of 2021, primarily because of continuous power outages and logistical difficulties.

We strongly recommend reading this post if you’re interested in learning more about South Africa’s GDP, including its history, present state, and future.

What is the meaning of GDP?

All product taxes plus any additional subsidies not included in the product value equal the gross value added (GDP) of all resident producers in the economy. The computation does not factor in the depreciation of artificial assets or the depletion and degradation of natural resources.

The gross value added by all of the nation’s resident producers, plus any product taxes and minus any subsidies that aren’t included in the product value, is the GDP, calculated at purchaser’s prices. The computation does not factor in the depreciation of artificial assets or the depletion and degradation of natural resources. The data are shown in current US dollars.

GDP calculations use the official exchange rates for a single year to convert local currencies into US dollars. When the official exchange rate is not a true reflection of the rate used in actual foreign

exchange transactions, some countries use a different conversion factor.

South Africa GDP Overview

Article Title	South Africa GDP History and Future
GDP 2023	399 billion US dollars
GDP 2022	405.87 billion US Dollars
Reported By	World Bank
For Further Details	Tap Here

South Africa GDP History and Future

South Africa was Africa’s largest and most developed country until Nigeria surpassed it in 2014. Services are the largest economic sector, accounting for about 73% of the GDP.

The potential long-term growth rate of South Africa is estimated to be 3.5% based on current policy settings. Although growing, per capita GDP growth has been unimpressive, growing by 2.2% over the 2000–09 decade and 1.6% annually between 1994 and 2009 compared to the 3.1% global growth during the same period.

As a result of ongoing energy and transportation constraints, the GDP of South Africa is only expected to grow by 0.5% in 2023. Nonetheless, estimates indicate that South Africa’s GDP will increase gradually by a total of 78.1 billion US dollars (+20.5 percent) at current prices between 2023 and 2028. After five years of growth, the GDP is expected to reach a new peak in 2028, valued at 459.02 billion US dollars.

South Africa GDP Current Status

Following a downwardly revised 0.5% increase in Q2 and worse than market expectations of a 0.1% decline, the South African economy shrank by 0.2% in Q3 of 2023. The main reasons for this contraction were the challenging international environment, ongoing rotating load shedding, and logistical issues.

There were declines in five of the ten economic activities; manufacturing (-1.3%), construction (-2.8%), and agriculture (-9.6%) were the three that made the biggest contributions to the overall subpar performance. Government spending increased by 0.3% while fixed investment shrank by 3.4% and private consumption declined by 0.3%.

Year Wise GDP Growth of South Africa

Real estate, banking, and business services (21.6%), government services (17%), wholesale, retail, and automotive trade, catering, and lodging (15%), and transportation, storage, and communication (9.3%) are the most important service categories contributing to South Africa’s GDP growth. 13.9 percent of the economy is made up of manufacturing, 8.3 percent by mining and quarrying, and just 2.6 percent by agriculture.

The nation’s GDP growth rate over the last five years is shown in the table below.

Year	GDP	Annual Change Rate
2018	$405.09B	0.36%
2019	$388.53B	-1.22%
2020	$337.62B	-6.65%
2021	$419.02B	11.26%
2022	$405.87B	-2.87%

South Africa’s decline in comparison to other emerging markets, such as China and India, can be attributed to several factors: the country’s small size and lack of a significant domestic consumer base; decades-long abnormally low rates of saving and investment, partly due to low disposable income; and a subpar education system that has left the nation severely short-staffed with qualified labor.

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