In the past, South Africa has maintained prudent macroeconomic policies that helped shield it from the negative effects of economic recession during the financial crisis of 2008.
Economic growth in South Africa is largely driven by consumption, which has slowed since the economic contraction of 2009. Gross domestic product (GDP) is growing slower than expected, at a projected 2.7 percent this year, 3.5 percent in 2014 and 3.8 percent in 2015. The slower growth means less revenue for the government, whose main revenue sources are taxes, while ameliorating the negative consequences of the global economic crisis has required more expenditure from it.
The article os also available in the Business Report section of the iol.co.za website:
