South Africa: Macroeconomic Challenges after a Decade of Success

99 Pages Posted: 19 Sep 2007

See all articles by Jeffrey A. Frankel

Jeffrey A. Frankel

Harvard University - Harvard Kennedy School (HKS); National Bureau of Economic Research (NBER)

Ben Smit

Stellenbosch University, Bureau of Economic Research

Federico Sturzenegger

Universidad Torcuato Di Tella; Harvard University - Harvard Kennedy School (HKS); National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: April 2007

Abstract

More than halfway through the new decade, the South African economy has done very well. Growth was high in 2004, 2005 and 2006, capital inflows and the rand are strong, the budget is relatively healthy, and inflation rates and interest rates are low. As democracy continues to consolidate, there are plenty of grounds for optimism; in fact business confidence indicators and private investment are at an all time high. This report asks the question if such achievements provide grounds for complacency. In other words, is the job done? Or do these achievements open the door to new challenges? Are there risks in the horizon? And how does the government's ASGI-SA strategy deal with the challenges?

Keywords: Economics, Macroeconomics

JEL Classification: O55, E00, E61, E63

Suggested Citation

Frankel, Jeffrey A. and Smit, Ben and Sturzenegger, Federico, South Africa: Macroeconomic Challenges after a Decade of Success (April 2007). KSG Working Paper No. RWP07-021, Available at SSRN: https://ssrn.com/abstract=976552 or http://dx.doi.org/10.2139/ssrn.976552

Jeffrey A. Frankel (Contact Author)

Harvard University - Harvard Kennedy School (HKS) ( email )

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Ben Smit

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Federico Sturzenegger

Universidad Torcuato Di Tella ( email )

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Argentina

Harvard University - Harvard Kennedy School (HKS) ( email )

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