An Evaluation of South African Economy and the Country's Growth Rate in the Past Five Years

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Running Head: FINANCE Introduction Objective of this paper is to carry out the analysis of South African economy using the several economic tools to evaluate the country growth rate within the past 5 years. The balance of payment (BOP) is a statistical tool that provides a systematic summary of South African economic transactions with other countries of the world. One of the major economic and financial tools to evaluate country's economic performances is the balance of payment and BOP is the record of all economic transactions between a country and all other countries in given a year. Balance of payments is the key economic indicator that shows economic relationships between a domestic economy and the rest of the world. This paper uses the balance of payments indicator to measure South African growth rate. "5-year growth rate for Balance of Payments" The paper collects South African balance of payments data from International Monetary Fund (2012) data warehouse. However, the IMF only has South African BOA data between 2005 and 2008 in its data warehouse. (See Table 1). Since the goal of this study is to use the last 5-year balance of payments data of South Africa, the paper collects the recent balance of payment data from OECD (2012) to reveal the country 5-year growth rate. Overview of the South African balance of payment reveals that the country has suffered the balance of payment deficit since 2007. Data in Table 2 reveal that South Africa suffers a balance
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