Although South Africa’s economic performance over the past decade has been poor, and the current recession deeper than forecast, there are grounds for hope. Outward manifestations of this include the significant revival of private sector fixed investment, and the growth in manufactured exports of recent years. Substantial economic recovery in the period to 1995 is likely, for a range of reasons, including the recovery of the world economy, and the impact of political reforms in South Africa, with prospects of growth rates of 4 to 5 percent over the next few years. Of critical importance, however, will be whether or not this growth becomes sustainable. If populist excesses can be avoided, and the necessary conditions for foreign and domestic private sector fixed investment growth are created, there is real reason for hope. Ref.
