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South Africa’s economic optimism

Jan 22, 2025, 7:05am EST
Africa
South Africa’s Sasol petrochemical refinery in Sasolburg, southwest of Johannesburg
Thando Hlophe/Reuters
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South Africa’s beleaguered economy is showing signs of recovery, its central bank governor said.

Growth this year in Africa’s biggest economy could be close to 2%, hardly a breakneck pace but a distinct improvement following years of relative stagnation.

The election of a coalition government which includes a pro-business party was one of the key enablers of the turnaround, Governor Lesetja Kganyago told Reuters at Davos, leading to reforms in transport and energy infrastructure and a rethinking of the immigration system. But he said global risks, notably the accession of US President Donald Trump, could threaten the recovery by pushing inflation beyond the central bank’s target level.

A bar chart showing youth unemployment rate in select countries
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