Since 1996, at the end of over twelve years of international sanctions, South Africa's Gross Domestic Product almost tripled to peak at $400 billion in 2011, but has since declined to roughly $385 billion in 2019.
The three-sector model in economics divides economies into three sectors of activity: extraction of raw materials (primary), manufacturing (secondary), and services (tertiary).
What is the current rate of GDP growth in SA?
0.8% annual change (2018)
The economy of
South Africa is the second largest
in Africa, after Nigeria.
Economy of South Africa.
| Statistics |
|---|
| Population | 58,775,022 (2019 est.) |
| GDP | $358.839 billion (nominal, 2019 est.) $804.688 billion (PPP, 2019) |
| GDP rank | 35th (nominal, 2019) 32nd (PPP, 2020) |
| GDP growth | 0.8% (2018) 0.2% (2019) −5.8% (2020e) 4.0% (2021e) |
Searchable List of South Africa's Most Valuable Export Products
| Rank | South African Export Product | Change |
|---|
| 1 | Platinum (unwrought) | +6% |
| 2 | Cars | +9.4% |
| 3 | Iron ores, concentrates | +35.9% |
| 4 | Coal, solid fuels made from coal | -22.4% |
Economy of South Africa
| Statistics |
|---|
| Main industries | mining (world's largest producer of platinum), gold, chromium, automobile manufacturing, metalworking, machinery, textiles, iron and steel, chemicals, fertiliser, foodstuffs, commercial ship repair |
| Ease-of-doing-business rank | 84th (easy, 2020) |
| External |
In 2018 the mining sector contributed R351 billion to the South African gross domestic product (GDP) A total of 456,438 people were employed in the mining sector in 2018. Each person employed in the mining sector has up to nine indirect dependants.
The 11 broad GICS sectors commonly used for sector breakdown reporting include the following:
- Energy.
- Materials.
- Industrials.
- Consumer Discretionary.
- Consumer Staples.
- Health Care.
- Financials.
- Information Technology.
The major categories of financial institutions include central banks, retail and commercial banks, internet banks, credit unions, savings, and loans associations, investment banks, investment companies, brokerage firms, insurance companies, and mortgage companies.
The financial sector mobilizes savings and allocates credit across space and time. An efficient financial sector reduces the cost and risk of producing and trading goods and services and thus makes an important contribution to raising the standard of living.
What are two roles of the financial sector? The financial sector facilitates trade, acting as a lubricant to the economy. Its second role is to transfer saving, outflows from the spending stream, back into spending.
An example of financial services are services like investment services, retirement planning and mortgage brokers. An example of financial service industries are banks, savings institutions, credit unions and credit card companies. An example of financial service providers are accountants and financial planners.
The financial sector plays an important role in the functioning of the economy through intermediation. Simply put, the financial sector sits between savers and borrowers: it takes funds from savers (for example, through deposits) and lends them to those who wish to borrow, be they households, businesses or governments.
The financial system plays a vital role in the economic development of a country. It encourages both savings and investment and also creates links between savers and investors and also facilitates the expansion of financial markets and aids in financial deepening and broadening.
What Is the Financial Sector? The financial sector is a section of the economy made up of firms and institutions that provide financial services to commercial and retail customers. This sector comprises a broad range of industries including banks, investment companies, insurance companies, and real estate firms.
What are the Functions of Financial Markets?
- Price Determination.
- Funds Mobilization.
- Liquidity.
- Risk sharing.
- Easy Access.
- Reduction in transaction costs and provision of the Information.
- Capital Formation.
- Business Solutions and Technology.
- Corporate Services.
- Currency Management.
- Executive Management.
- Financial Markets.
- Financial Services.
- Financial Surveillance.
- Human Resources.
Two financial services sectors that are involved in influencing interest rate movements entail : reserve bank of Australia and financial markets .
The Banking Association South Africa (BASA) briefed the Committee on the support of the financial sector to the tourism industry, especially on small and medium enterprises (SMEs). The Association did not regulate banks. It was a voluntary association which registered banks were members of.
The economy is divided into three broad categories—agriculture (which includes broader activities such as mining, utilities, and construction), manufacturing, and services (figure 1). Services has been, by far, the biggest contributor to GDP, accounting for over 68 percent in 2018 (figure 1).
The five main components of the GDP are: (private) consumption, fixed investment, change in inventories, government purchases (i.e. government consumption), and net exports. Traditionally, the U.S. economy's average growth rate has been between 2.5% and 3.0%.
Fastest Growing Industries in the US in 2020
- Autonomous Underwater Vehicle Manufacturing.
- Medical & Recreational Marijuana Growing.
- Medical & Recreational Marijuana Stores.
- Meal Kit Delivery Services.
- Video Conferencing Software Developers.
- Hand Sanitizer Manufacturing.
- Massage Franchises.
- 3D Printer Manufacturing.
Many economists recognize the following five economic sectors; the primary sector which includes agriculture, mining and other natural resource industries; the secondary sector covering manufacturing, engineering and construction; a tertiary sector for the service industries, the quaternary sector for intellectual
In 2018, finance and insurance represented 7.4 percent (or $1.5 trillion) of U.S. gross domestic product. Leadership in this large, high-growth sector translates into substantial economic activity and direct and indirect job creation in the United States.
The 10 Global Biggest Industries by Revenue
- Global Car & Automobile Sales.
- Global Commercial Real Estate.
- Global Oil & Gas Exploration & Production.
- Global Car & Automobile Manufacturing. $2,976,5B.
- Global Direct General Insurance Carriers. $2,580,7B.
- Global Auto Parts & Accessories Manufacturing. $2,500,4B.
- Global Commercial Banks. $2,341,0B.
- Global Tourism. $1,703,3B.
If you're planning to start a new business, or to join one that's expected to flourish, here are the top 10 booming industries.
- Energy.
- Media.
- Consumer retail.
- Construction.
- Hospitality.
- Finance.
- Real estate. Forecasted revenue growth: 1.6 percent.
- Transportation. Forecasted revenue growth: 2.2 percent.
Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country's economic health.
The four sectors in the American economy are Government, For-Profit or Business, the Nonprofit or Independent, and Households or Family. While we often think of these as separate entities, they are often inter-dependent.
