Background.
South Africa’s economy is the largest in the continent of Africa when you are looking at
the nominal GDP. As of 2012 the nominal GDP was US$ 384 billion and the GDP per
capita was estimated by the World Bank US$ 7507. The GDP PPP, Purchasing Power
Parity, per capita is estimated by the world bank at US$ 576 billion which ranks them on
the 77th place of the GDP PPP per capita ranking. This is one of the highest ranking of a
Africa country.
The agriculture sector is 2.6% represented in the GDP, the industry sector is 28.4%
represented in the GDP and the service sector is 69% represented. When looking at the
labor force of South Africa 9% of the labor force is working in agriculture, 26% in industry
and 65% in services. Still the main industry of South Africa is mining. South Africa is the
world largest producer of platinum. When looking in the history South Africa was a more
primary and secundairy based economy. As you can see at the numbers of today this has
changed to a more tertiary economy.
The unemployment rate is estimated at 25% (est. 2012) but a Goldman Sachs report in
2013 says that this number is underestimating the real unemployment. When adding the
people who are not looking for jobs anymore because they believe its impossible to find a
job this number will increase to 35%.
Recent years South Africa has a negative Trade Balance. Since 2003 the Current Balance
account shows a negative number. The export of South Africa was growing with about the
same rate as the import of South Africa. However, since 2002 the export could stay up with
the import which leaded to a negative trade balance. The Food Crisis in 2002 asked for
more import. This negative trade balance makes the currency of South Africa weaker.
Currency
The official currency of South Africa is the South African Rand. January 1 2014, 1 US
Dollar is worth 10.48 Rand. The Rand was introduced in February 1961. Before the Rand
there was the South African Pound. In the early years of the currency it was pegged to
either the US Dollar or the UK pound.
Source: : Ilzetzki, E., Reinhart, C., M., Rogoff K., S. (2011)
http://www.carmenreinhart.com/data/browse-by-country/countries/south-africa/
At the start of the Rand it was worth US$ 1.40. in years of 1980-1985 there was a strong
devaluation of the currency. It was trading US$ 1 between 1 Rand and 1.30 Rand. But the
