Page 54 - IRMSA Risk Report 2023
P. 54
7.6
ECONOMIC
COLLAPSE
South Africa’s growth has trended downwards since 2010, averaging just
1.7% between 2011 and 2018. In 2019, South Africa was plunged into
its third recession since 1994. Precipitating factors included the global
downswing following the global financial crisis; declining commodity prices;
deindustrialisation; state capture (that is, systemic corruption); budgetary cuts;
restrictive macroeconomic policies; slowed investment because of economic
stagnation; and insufficient electricity supply and resultant blackouts, amongst
others. The downward trajectory has continued over the last three years,
exacerbated by elevated levels of loadshedding that have devastating
economic impacts, as well as the rising cost of living due to the impact of the
Russia Ukraine war.
DR AZAR JAMMINE
DIRECTOR
ECONOMETRIX
54 IRMSA RISK REPORT 2023/24
