Foreign Debt And Debt Services In South Africa Essay

WORDS
2817
Cite

U.S. Department of Commerce

South Africa’s population of 50 million enjoys the most sophisticated, mature and productive economy on the African continent today (U.S. commercial service, 2014). The country’s GDP represents approximately 33 percent of the sub-Saharan total and the South African economy has experienced sustained growth of 3.2 percent over the past 5 years (US commercial service, 2014). According to the U.S. Department of Commerce, “The U.S. Commercial Service in South Africa is co-located with the U.S. Consulate General [with the] mission  to create jobs in the United States by advancing commercial opportunities in South Africa and strategically assisting firms export U.S. products and services” (U.S. commercial service, 2014, para. 2).

World Trade Organization



The World Trade Organization’s (WTO’s) most recent policy review (2008) shows that during the period from 2003 through 2008, the percentage of trade in goods and services to South Africa’s GDP rose from 53.8% to 73.8% (in real terms, 52.16% to 61.83%). In addition, the country experienced sustained export growth during this period, with a nominal average rate of 21% a year. Conversely, imports also increased slightly more at 22.7%, resulting in a declining trade balance that adversely affected the current account deficit which has been increasingly steadily since 2003, accounting for 7.41% of GDP by 2008 (Trade policy review, 2008). The country, though, continues to suffer from inordinately high unemployment and inflation levels (Trade policy review, 2008).

World Bank



The World Bank lauds South Africa for improving the transparency of its national budget formulation process, but improvements in provincial budget-making are still needed (Malemba, 2014).

International Monetary Fund



The International Monetary Fund (IMF) concurs with WTO’s assessment of South Africa for the period 2003 through 2008, but cautions that following this relatively robust economic growth, the country experienced a downturn, like other major economies, after the Great Recession of 2009 (Selassie, 2011). The South African economy has languished with complete recovery being elusive (Selassie, 2011).

GNI Growth



As an annual percentage, GNI growth reflects the total of value from all domestic producers as well as any product taxes (less subsidies) that are not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) that are received from other countries (GNI growth, 2014). The GNI growth for South Africa for the period 2010 through 2013 is set forth in Table 1 below.

Table 1

GNI growth for South Africa:  2010-2013

Year

GNI growth

2010

3.4

2011

3.3

2012

2.4

2013

2.1

Source:  World Bank database at http://data.worldbank.org/indicator/NY.GNP.MKTP.KD.ZG

Quantifiable Measures of the Size of the South African Economy

Selected quantifiable measures of the size of the South African economy for the period 2002 through 2008 are provided in Table 2, followed by more recent data from the World Bank in Table 3 below.

Table 2

Historic quantifiable measures of the size of the South African economy:  2002-2008

 

2002

2003

2004

2005

2006

2007

2008

Miscellaneous

 
 
 
 
 
 
 

Population (million)

45.34

46.05

46.71

47.36

47.97

48.55

48.70

GDP at market price (US$ million, current prices)

111,130

166,655

216,340

242,676

257,894

283,381

282,995

GDP per capita (US$, current prices)

2,451

3,619

4,631

5,125

5,376

5,836

5,811

Real GDP (annual percentage change)

3.7

3.1

4.9

5.0

5.3

5.1

3.1

Unemployment rate (official definition;  per cent)

30.4

28.0

26.3

26.7

25.5

24.2

23.1

Sectoral distribution of GDP

(percentage)

Agriculture, forestry, and fishing

2.9

2.7

2.6

2.7

2.3

2.3

2.6

Mining and energy

8.8

8.9

8.6

8.3

8.0

7.6

7.0

of which:  mining and quarrying

6.5

6.6

6.3

6.2

5.8

5.6

5.0

Manufacturing sector

17.2

16.4

16.4

16.3

16.3

16.2

15.9

Services

62.2

63.1

63.5

63.8

64.5

65.0

65.6

Construction (contractors)

2.4

2.5

2.6

2.8

3.0

3.4

3.7

Wholesale and retail trade, catering, and accommodation

13.0

13.4

13.6

13.9

14.1

14.1

13.8

Transport, storage, and communications

9.5

9.8

9.7

9.8

9.9

9.9

10.0

Finance, insurance, real estate, and business services

18.3

18.5

19.0

19.0

19.4

19.7

20.1

Community,...
...

dollar exchange rate (end of period)
10.52

7.56

6.45

6.36

6.77

7.05

8.25

Real effective exchange ratec

82.55

103.23

110.13

112.50

108.87

105.05

94.07

Change in real effective rated

-9.67

25.05

6.68

2.15

-3.23

-3.51

-10.45

Nominal effective exchange ratec

66.54

83.23

90.84

91.03

85.68

77.44

64.17

Change in nominal effective rated

-21.70

25.08

9.14

0.21

-5.88

-9.62

-17.14

Memorandum

 
 
 
 
 
 
 

Current account balance (percentage of GDP)

0.8

-1.1

-3.2

-4

-6.3

-7.3

-7.4

Total external debt/XGS (%)

83.0

71.5

64.6

61.8

66.9

70.6

61.7

Gross official reserves (US$ billion)

6.3

7.0

12.8

20.5

26.4

31.8

38.4

Gross official reserves (months of imports)

2.6

2.0

2.2

3.0

3.3

3.3

3.7

Trade in goods and services (percentage of GDP)

62.1

53.8

53.8

55.6

62.5

66.0

73.8

Terms of trade (percentage change)

 
 
 
 
 
 
 

Including gold

2.1

3.7

1.1

0.4

4.4

3.2

1.5

Excluding gold

0.1

4.8

1.8

0.2

2.9

3

0.9

a Public deficit (-) or surplus (+).

b A change in the underlying methodology caused an upward bias to the inflation rate in 2008.

c Exchange rate Index 2000 = 100.

d Depreciation (-) and appreciation (+).

Source:  World Trade Organization trade policy review, 2008, annex 4:  South Africa, pp. 3-4
 

Table 3

Most recent financial data for South Africa from the World Bank:  2003, 2004, 2011, 2012
 

 

 
 

2003

2004

2011

2012

South Africa

GNI per capita, PPP (current international $)

8,090.0

8,650.0

11,640.0

11,970.0

South Africa

Population, total (in millions)

46.4

47.0

51.6

52.3

South Africa

GDP (current US$) (in millions)

168,219.3

219,092.9

403,894.3

382,337.6

South Africa

GDP growth (annual %)

2.9

4.6

3.6

2.5

South Africa

Life expectancy at birth, total (years)

52.5

51.9

55.3

56.1

 

Source:  World Bank, South Africa (2014)

Cite this Document:

"Foreign Debt And Debt Services In South Africa Essay" (2017, July 21) Retrieved April 26, 2024, from
https://www.paperdue.com/essay/foreign-debt-and-debt-services-in-south-africa-essay-essay-2168593

"Foreign Debt And Debt Services In South Africa Essay" 21 July 2017. Web.26 April. 2024. <
https://www.paperdue.com/essay/foreign-debt-and-debt-services-in-south-africa-essay-essay-2168593>

"Foreign Debt And Debt Services In South Africa Essay", 21 July 2017, Accessed.26 April. 2024,
https://www.paperdue.com/essay/foreign-debt-and-debt-services-in-south-africa-essay-essay-2168593

Related Documents

Financial Proposal: Dorchester, Ltd. As discussed in earlier papers, for Dorchester, the final decision as to which particular nation to invest in is dependent on a range of distinct scenarios; these factors naturally impact the selected acquisition target. Before the acquisition target is selected, the nation which houses the potential acquisition target needs to be scrutinized closely. For instance, the trade environment of the nation where the prospective acquisition is located

Colonization Features of colonization The present day global stratification is a result of the colonization and conquest by European nations of the indigenous nations most of which were in Africa. Direct colonization largely ended but the ideology that came with colonization still lingers on in people's identity within their cultural spheres as well as their political, social and economic practices. Colonization began with entry of the colonizers forcefully into the indigenous nations.

firm Australia business Philippine. Some risks considered Philippine;, business environment Philippine specific firm. It . A marketing assignment format, focus specific firm. Topic: The firm work a business analyst strongly interested expanding current manufacturing sales ( domestic export) activity markets. Globalization is an obvious trend that is catching on all over the world. Australia has also not been left behind in this. This has led to some Australian firms turning

Poverty Reduction occur on a Local Scale or must it be in a Broader Scope to be Meaningful? Discuss with Reference to Specific Examples. One of the biggest issues that a host of governments and international organizations are wrestling with (i.e. The UN) is how to effectively eliminate poverty. This is because, a number of different programs have been implemented in the past that were suppose to have a dramatic

Domestic and External Factors on African Macroeconomic Formulation Domestic and External Factors on African Macroeconomic Formulation Growth, productivity and employment are the most common economic variables to reduce extreme poverty and break poverty trap. Report from World Bank in 2007 revealed that one percent in GDP growth results to 1.3% poverty decline in low-income countries. Moreover, development in the productive capacity leads to reduction in sustainable poverty. With improvement in the economic growth,

Nigeria Orphanage Non-Governmental Organization Placement: Examination of the Experience of Students In NGO Placement The objective of this work is to examine the experience of students on the NGO placement in Nigeria. The NGO at focus is that of St. Joseph Orphanage and Women Development Center. The writer of this work was provided with an excellent opportunity to exam the organization chart and policy of the non-governmental and non-profit organization. In addition,