Answer to Question #330246 in Macroeconomics for A.vee

Question

Provide a brief explanation on how the South African economic growth had been performing

since 2000. Further, what conclusions can be drawn from fuel tax increase effects on the

economic growth and public social welfare.

Answer 1

South Africa's real GDP growth was 0.2% in 2019. The pandemic and the containment measures to curb the spread of the virus further damaged the economy. Real GDP contracted by 8.2% in 2020, the result of a decline in construction, transport and communication, manufacturing, and mining.