Analysts Warn Inflation and Poor Exports mean SA Will Experience Slowest Growth of African Economies in 2023

• Analysts and forecasters predict that 2023 will not be a good year for economic growth in South Africa
• Oxford Economics Africa released its 2023 outlook for major African economies and predicted that SA's economy would only grow by 1%
• The dismal projection is attributed to a mixture of poor demand for exports from the EU and US and inflation hurting the pockets of South African consumers

JOHANNESBURG - South Africa's economic growth is set to lag far behind counterpart countries on the African continent, according to forecasters and analysts at Oxford Economics Africa.

Oxford Economics Africa released its African 2023 Outlook on Friday, 25 November, indicating that the nation's gross domestic product (GDP) will only grow by 1% in 2023.

The meek growth is in stark contrast to the projected increase in Senegal, which is expected to be Africa's fastest-growing economy with a GDP of 7%.

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According to the organisation's head of macroeconomics, Jacques Nel, South Africa's exports will decline next year because of a lack of demand created by US and European Union recessions.

A decline in exports would not be the only factor impacting the country's GDP, as ongoing inflation will severely impact the buying power of consumers.

According to IOL, inflation in South Africa has peaked at 7.8%, the highest it has ever been in 13 years. Coupled with the fact that household incomes have not increased with inflation, Nel claimed that consumer spending would not boost economic growth like it did in previous years.

News24 reported that inflation is only expected to return to the midpoint target rate of 4.5% in 2024.

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No, 60% of South Africans are not debt-free, Twitter page misinterpret survey’s findings

In another story, Briefly News reported that on 14 September 2022, Africa Zone Facts claimed South Africa created 60 000 new millionaires and 500 000 new taxpayers in the past year.

The Twitter account went on to allege that a study found 60% of South African consumers are living debt-free, which is a huge claim considering that the unemployment rate currently sits at 33.9%, according to Stats SA.

Africa Zone Facts cited Brandmapp, a landscape study of economically active South African adults, as the source of this information. The particular research by Brandmapp seems to have been published in 2021.

Source: Briefly News