• The economy of South Africa is set for a gradual recovery. Despite growth rates failing to keep up with the population growth, high unemployment and restricted consumer spending, the economy is expected to recover with the elimination of policy uncertainty around the land reform following the general election, post which, investment is expected to increase. In the coming years, real GDP growth is expected to rise, reaching 1.6 in 2020 and 2.5% each year before 2026. While private consumption is expected to strengthen, high levels of unemployment will likely hamper its growth.
  • Inflation in 2019 was in line with the target range for inflation set by the central bank, which is between 3-6%. Low and stable inflation would benefit low-income households, who tend to face the greatest burden of high inflation.
  • The contribution of the tourism sector has doubled since the end of apartheid. The industry has been singled out as a priority by the government due to its job creation potential. The real value of inbound tourism receipts witnessed gains in 2019 despite falling by 4.8% in 2018. By 2020, the government aims to raise arrivals to 15 million and create 250,000 jobs.