South Africa’s economy should improve in 2021. Private final consumption will lead the recovery this year, as pent-up domestic and external demand are released. However still-high unemployment will represent a significant drag on the economy, together with the high level of public debt. Real GDP growth should continue, albeit it at a slower rate, and will be 3.7% in 2022, before gradually falling to average around 2.5% per year in 2024-2028.
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