| South Africa's economy has been in an upward phase of the business cycle since September 1999 - the longest period of economic expansion in the country's recorded history.
During this upswing (working on data for the period up to the fourth quarter of 2007), the country's annual economic growth rate has averaged over 4%. In the decade prior to 1994, economic growth averaged less than 1% a year.
South Africa's real gross domestic product (GDP) rose by 3.7% in 2002, 3.1% in 2003, 4.9% in 2004, 5% in 2005, 5.4% in 2006 - the highest since 1981 - and 5.1% in 2007. In the fourth quarter of 2007, South Africa recorded its 33rd quarter of uninterrupted expansion in real GDP since September 1999.
(Data source: Statistics South Africa )
South Africa's economy has been completely overhauled since the advent of democracy in the country in 1994. Bold macroeconomic reforms have boosted competitiveness, growing the economy, creating jobs and opening South Africa up to world markets.
Over the years these policies have built up a rock-solid macroeconomic structure. Taxes have been cut, tariffs dropped, the fiscal deficit reined in, inflation curbed and exchange controls relaxed.
Economic growth and prudent fiscal management have seen South Africa's budget deficit (the difference between the government's total expenditure and its total receipts, excluding borrowing) drop dramatically, from 5.1% of GDP in 1993/94 to 0.5% in 2005/06 - the second-lowest fiscal deficit in the country's history after the 0.1% reached during the gold boom in 1980.
In 2006/07, the country posted its first ever budget surplus, of 0.3%.
Consumer inflation came in at under 5% from 2004 through 2006 before global prices pushed it up to 6.5% in 2007. In 1994 it stood at 9.8%.
(Data source: Statistics South Africa )
Despite lower taxes across the board, the upbeat economy, improved tax compliance and a steadily improving tax and customs administration have seen government revenue surging, hitting R475.8-billion in 2006/07 - over three times the figure for 1996/9. |
South Africa is the economic powerhouse of Africa, leading the continent in industrial output and mineral production and generating a large proportion of Africa's electricity.
