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<\/a><\/figure><\/div>\n\n\nHowever, Maarten Ackerman, Chief Economist at Citadel, said that there is no real cause for celebration as the economy is not growing fast enough to keep up with the nation’s population growth. <\/p>\n\n\n\n
\u201cSimply put, the economy is growing at around 1%, while the population is growing at around 1.5% to 1.6%<\/strong>. The economy isn\u2019t producing enough goods and services to keep apace, and there is a greater need for social support while unemployment keeps increasing,” said Ackerman. <\/p>\n\n\n\n \u201cEconomic growth was flat in the last quarter of 2023. We are sitting at 1.2% year-on-year real unadjusted GDP growth, while the average real GDP growth for 2023 was only 0.6%.”<\/p>\n\n\n\n “Although this is not officially considered a recession, and some are celebrating it, in my view, this is still a very weak economic performance, as we are not outpacing population growth. And this, in fact, implies that we are in a per capita recession<\/strong>.\u201d<\/p>\n\n\n\n Poor for a poor country <\/strong><\/p>\n\n\n\n Data from the IMF shows that South Africa’s GDP per capita has dropped substantially in recent years. <\/p>\n\n\n\n South Africa\u2019s GDP per capita dropped from $6,680 in 2022 to $6,190 in 2023 \u2013 the same level of GDP per capita as 2005.<\/p>\n\n\n\n Moreover, South Africa\u2019s GDP per capita in 2023 now sits below the $6,450 average for an emerging and developing market.<\/p>\n\n\n\n In 2012, the average GDP per capita for an emerging market was $4,620 \u2013 only 52% of the average GDP per capita in South Africa, which stood at a record high of $8,800. <\/p>\n\n\n\n Predictions also are negative, with South Africa\u2019s GDP per capita expected to reach a measly $6,920 in 2028.<\/p>\n\n\n\n On the other hand, the average GDP per capita in emerging markets is expected to reach $8,280 in 2028, while the world\u2019s average grows to $16,300.<\/p>\n\n\n