South Africa has been struggling with a weakening economy fuelled by unemployment, power shortages and a sharp fall in key industries such as mining and manufacturing among other things.
These struggles are a shared concern by other emerging economies in Brics which the country is the only African country presented.
South Africa joined emerging economies Brazil, Russia, India, China and South Africa (BRICS) at the invitation of China. These developing counties have been hit by major economic challenges that have slowed down their growth.
“Brazil and Russia are in recession, China is slowing, so from our perspective it’s only India, that’s growing at still a reasonably strong pace. But that’s not enough to lift the Brics and it’s not enough to lift investment and capital flows into emerging markets.” Said Kevin Lings, Chief economies, Stanlib
There are fears that if the South Africa’s economy continues to go low the country may go into recession
Financial analysists believe that the National Development Plan needs to be implemented to avoid further weakening of the economy. The analysists hope the finance minister will announce strategies to overcome the situation in next month’s Medium Term Budget.