"What country are you from?"
"South Africa. ”
"Which country in South Africa?"
"I'm from South Africa, and South Africa is a country. ”
In the minds of many Chinese people, South Africa is the abbreviation of "South Africa", but in fact, South Africa, whose full name is "Republic of South Africa", is a sovereign country and the most economically developed country in Africa.
But since 2020, South Africa's economy has been in a sharp decline, and it has not yet eased up, why is that?
1. "Developed" countries?
The Republic of South Africa is located at the southernmost tip of Africa, and after the Great Voyage, the Dutch and the British established colonies here, resulting in both black and white people living in this land.
But unlike most countries in similar situations, South Africa was once considered a place of "treating blacks well and discriminating against whites" for various historical reasons.
The question of which is right and which is not discussed here is clear, but it is clear that there are contradictions between the races, and that the authorities have long pursued apartheid in the country by various means, especially after 1948.
The apartheid system was strongly condemned by international public opinion, but it has to be admitted that in the 40 years or so since the introduction of apartheid, South Africa's economy has developed rapidly.
In the 60s, the fastest growing country in the world was Japan, and South Africa's economic growth was not far behind.
At that time, South Africa's major cities, such as Johannesburg, Cape Town, Pretoria, etc., were full of towering office buildings, dazzling commercial advertisements, and cars on the streets in all directions.
If the national income level is calculated according to the population of European residents, South Africa is a well-deserved developed country.
However, the dark corners behind the prosperity should also be confronted.
During apartheid, most of the well-paid and decent jobs in South Africa fell into the hands of whites, who lived in affluence, but blacks and Asians remained in poverty.
Even if the level of national income is measured by the inhabitants of Africa, South Africa should be classified as one of the most backward countries.
There was a huge gap between the rich and the poor in South Africa, but in terms of communication channels at that time, public opinion was often in the hands of powerful people, which created the false impression that South Africa was a developed country.
However, it needs to be recognized that compared with other African countries, South Africa's economic strength is indeed strong, its geographical location, and its mineral resources, including gold and diamonds, are extremely rich.
Moreover, South Africa's manufacturing industry is also outstanding on the African continent, and its industrialization level ranks first in Africa.
Overall, South Africa is still a developing country, but it is also the second largest economy in Africa after Nigeria and the most economically developed country in Africa.
However, since 2020, South Africa's economy has suffered a heavy blow, and it seems that even the last layer of "illusion" is difficult to maintain......
2. Economic "regression"
In 2020, the new crown epidemic spread around the world, and the economies of all countries were affected to varying degrees, and South Africa was one of the countries with the most serious economic decline.
According to data released by Statistics South Africa that year, South Africa's GDP fell by 17.1% year-on-year and 51% quarter-on-quarter in the second quarter.
In fact, before the epidemic, South Africa's economy was already showing signs of contraction, and the overall per capita GDP showed a downward trend, and the arrival of the epidemic allowed the ills to explode overnight.
As mentioned earlier, the manufacturing sector is an important part of the South African economy, and the pandemic has caused factory shutdowns and forced production activities to stop, and the economy is bound to suffer a serious setback.
And similar to the common impression of African countries, South Africa's public facilities such as health care and electricity are also slightly weak, the former directly affects the labor force, and the latter is related to production activities.
In 2022, South Africa will frequently carry out power rationing, which will seriously affect the production and operation activities of industry and commerce, and the mining industry, which South Africa depends on, will bear the brunt, and production will drop sharply.
Because of the power crisis, the South African government once declared a "state of national disaster", saying: "Continued power rationing is hindering South Africa's economic recovery." ”
In addition, South Africa is facing a severe inflation problem, which is affected by international factors such as the Russia-Ukraine conflict and the situation in the Middle East.
The mainland is South Africa's largest trading partner, and at a time when South Africa's economic growth is sluggish, the mainland has also provided assistance in areas such as tourism, but South Africa's current situation is still not optimistic.
According to reports, in February this year, South African Finance Minister Godonwana said in a speech that the South African economy is still facing falling commodity prices and structural problems, and GDP growth is expected to be only 0.6% in 2023.
And in 2023-2024, South Africa's tax situation will deteriorate sharply, and some tax revenues will be raised to alleviate the huge fiscal pressure.
South Africa's 2024 general election is just around the corner, and hopefully they will be able to get out of their economic woes soon.
Resources:
The Paper "Guo Yemin - Was South Africa Really a Developed Country?"
Beijing News "What happened to South Africa's economy when it plummeted more than India in the second quarter"
Economic Daily "South Africa's Economy Moves Forward Against the Wind"
Overseas Network "South Africa's Economic Growth Faces Challenges"