South African GDP data to be announced
South Africa will announce fourth quarter GDP data today.
South Africa’s GDP was projected to grow by 2% in 2022, returning to pre-COVID-19 growth numbers. Despite reverting to pre-pandemic growth, South Africa is still experiencing significant growth risks including high unemployment and concerns around the Omicron variant.
Social unrest in July, sparked by former President Jacob Zuma’s prison sentence, slowed growth and spooked investors. South Africa’s KwaZulu-Natal and Guateng provinces saw widespread looting and arson.
A low vaccination rate and a bearish investment climate continue to hinder South African economic growth. Although South Africa supports investments and makes efforts to attract FDI, investments are hindered by a number of factors including difficulty accessing senior decision makers, domestic policies and skepticism from some political circles towards FDI. Due to uncertainties that have arisen following the COVID-19 pandemic, investors have been hesitant to invest in some South African industries, adding another obstacle to economic growth. Leading industry sectors that have potential for investment include capital goods, renewable energy and oil and gas equipment.
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