Strenghts and Weaknesses of the South African Economy

quality products and services for the rest of the world. Regardless, South Africa stands as the

Theses similarities are associated with rapidly rising cost and large, underserved populations. It is also important to recognize the significant differences between the United States and South Africa. South Africa is also less developed and has fewer resources than the US. South Africa has a large private sector that is balanced to absorb management technology pioneered in the United States.

South Africa is a country with very diverse social classes. As you can see in this graph the middle class and upper middle class have increased in percentage of population over the years. This shows that south Africa's poverty rates are dropping and more people are living a good life

The unemployment rate is around 29%, thus making the crime rate out of control. There is a hijacking approximately every two minutes. There are speed limits, but no one obeys them. This may be the reason car accidents in South Africa are way higher than in the United States. All of the cars in South Africa have a manual transmission (stick shift); there are no automatics.

According to Staff review of the Economic Situation for January 28-29, the economic growth rate picked up in the second half of 2013. There was a gradual increase in the total payroll employment and a decline in unemployment rate. Consumer price inflation was still performing poorly than expected, while longer-term inflation expectations remained stable.

According to easynomics.com, from Q3 2012-Q2 2015, there was a confirmed upward trend with real GDP rising which translates to approximately 2.26 percent annual growth rate. Although the increase rate is too slow that people may not feel the recovery, but it does suggest the increase.

December 1984, marked the middle of the longest postwar expansion. As the GDP chart above shows, growth rates

The manufacturing sector in South Africa’s economy continues to hold a significant share of the economy

The county of South Africa is an economically flourishing country and probably the most advanced country on the continent of Africa. However the entire continent of Africa is probably the most undeveloped part of the world. Why is South Africa so different from the rest of its continent? Karen Politis Virk explains that it is because of South Africa’s developed economy and diverse population (Virk 40). South Africa has three main ethnic groups: African, Afrikaners, and the mixed race. The Afrikaners and mixed races have many roots to Europe and Asia giving the nation even more diversity and a culture melting pot. This set the nation apart from the rest of the African nation in which the majority of the residents are of native African

¨It is the most highly industrialized amongst the other countries in Africa¨http://www.cfr.org/international-organizations-and-alliances/group-eight-g8-industrialized-nations/p10647. Not only is it’s nature beautiful but so are it’s people. Although

According to the US Inflation Calculator (2017), the current inflation rate is 2.7% as of February 28, 2017. This is the rate at which consumer goods rise in price per year. An inflation rate between two and three percent is beneficial for an economy because it encourage consumers to buy and borrow more. This means that the government and central banks strive to meet a limited level of inflation (The Economic Times, 2017). The consistent inflation rate is positive

GDP now is in the US is 3.3%, GDP has lowered in the last 10 years. In 2007 the GDP in the US was 4.40%. There isn’t a pattern for how much it changed in 10 years it kind of went up and down since 2007. In the future I think that GDP will raise more and more.

Over the last several years, the United States economy has experienced steady growth. While growth has been slow, it is evident that the American economy is making positive improvements.

The superimposing factor that gives South Africa such an advantage over other prospective African business environments is that it possesses of a very powerful and sophisticated vantage-point geographically. South Africa is strategically located for manufacturing and exportation into several regions globally and can be an unmitigated platform for MNC’s who may be interested in a venture within this region. The important advantages include regional competitiveness, combined with reduced operational costs and a significantly prominent market access (Safrica.info, 2011).

In 2003 the global economic situation was flourishing with growth strengthening up to 3% in 2003 from