South Africa demonstrates external resilience despite global shocks, according to a recent survey by trade credit insurance company Allianz Trade.
- The country’s positive economic performance stands out, despite challenges such as modest employment rates, load shedding, and critical infrastructure backlogs.
- South Africa has experienced a decline in insolvencies and reduced external vulnerabilities.
- Abundant international reserves, a flexible exchange rate, and limited external debt in foreign currency contribute to the country’s resilience.
- Fiscal consolidation efforts, disciplined salary increases, and increased tax collection have helped stabilize the government debt ratio.
- Reliable electricity supply remains a weakness, hindering growth and impacting businesses, industries, and households.
- Disputes among political elites have led to social unrest, affecting the institutional framework and predictability of government action.