Macroeconomic Trends in South Africa REPORT 2024

2023 was a challenging year for the South African economy – an expected anemic GDP growth of below 1 per cent, influenced by persisting freight, logistics, governance and energy supply constraints, high interest rates and rising fuel and food prices. In addition, adverse weather conditions continue to affect lives and livelihoods and damage infrastructure. Going into 2024, the South African Reserve Bank (SARB) anticipates a 1.2 per cent growth in the GDP for the year and expects the headline inflation rate to ease further into the bank’s inflation target range of 3 – 6 per cent – as, in fact, the headline inflation for 2023 has already hit the upper end of the target. As the 2024 February Budget Review approaches, attention will be on measures and reforms to support fiscal consolidation, and the better management of state-owned entities. This is a critical time for South Africa, especially with elections posing additional challenges to public expenditure, and even more so as the country enters uncharted political waters.