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Macroeconomic risks after a decade of microeconomic turbulence: South Africa (2007-2020)

Author

Listed:
  • Ricardo Hausmann
  • Federico Sturzenegger
  • Patricio Goldstein
  • Frank Muci
  • Douglas Barrios

Abstract

This study analyses the performance of macroeconomic policy in South Africa in 2007-2020 and outlines challenges for policy in the coming decade. After remarkable economic growth in 1997-07, South Africa's progress slowed dramatically in 2009 with the global financial crisis. Real GDP growth decelerated more than in other emerging markets and mineral exporting peers and never recovered pre-crisis levels. In addition, the budget deficit that provided counter-cyclical support to the economy was never reigned in, leading to a rapidly rising public debt load.

Suggested Citation

  • Ricardo Hausmann & Federico Sturzenegger & Patricio Goldstein & Frank Muci & Douglas Barrios, 2022. "Macroeconomic risks after a decade of microeconomic turbulence: South Africa (2007-2020)," WIDER Working Paper Series wp-2022-3, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2022-3
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    Cited by:

    1. Barry Eichengreen & Ricardo Hausmann & Ugo Panizza, 2023. "Yet it Endures: The Persistence of Original Sin," Open Economies Review, Springer, vol. 34(1), pages 1-42, February.
    2. Sarb, 2023. "Occasional Bulletin of Economic Notes 2301 combined," Occasional Bulletin of Economic Notes 11043, South African Reserve Bank.
    3. Kishan Shah, 2022. "Diagnosing South Africa’s High Unemployment and Low Informality," CID Working Papers 138a, Center for International Development at Harvard University.

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    More about this item

    Keywords

    Macroeconomic policy; Economic growth; Emerging markets; South Africa;
    All these keywords.

    JEL classification:

    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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