South Africa's growth forecast for 2020 was recently cut by the World Bank to below 1%.
The economic and governance problems have mounted over the past few years. The country has faced pressure to increase its economic growth, tackle policy uncertainty and stabilise its debt to avoid credit rating downgrades.
Business Unity South Africa (Busa) on Tuesday hosted its second Business Economic Indaba where it warned President Cyril Ramaphosa against an overemphasis on seeking consensus when making decisions.
To shine the spotlight on the country's economy, Eusebius McKaiser facilitates a conversation with Political Economy Southern Africa (Pesa) economist and executive director Siya Biniza, PwC chief economist Lullu Krugel and Investec chief economist Annabel Bishop.
We had a figure of 0.8% and the Reserve Bank says the outlook is weaker than its previous projections because of binding infrastructure contraints notably in electricity supply and export momentum will be hindered by weak external demands.— Annabel Bishop, Chief economist - Investec
Krugel says South Africa probably has a population growth rate in the region of 1,5%-2% and if the economy is not growing at least at that rate, it means South Africa is getting poorer on a per capita basis.
This has been happening for the past four years in a row that we have been getting poorer on a per capita basis.— Lullu Krugel, Chief economist - PWC
Biniza says if we look at the population growth averaging at around 1,2% currently, the population is growing much faster than what it is growing in terms of prosperity.
If you look at that simple perspective of a GDP growth of 0,9% as compared to a population growth of 1,2%, it means that more people are falling into poverty.— Siya Biniza, Economist and executive director - Pesa
Listen below to the full conversation on whether South Africa's economy can grow in 2020: