Case Study: Economic Challenges in South Africa

South Africa has faced persistent economic headwinds, with real GDP growth averaging under 1.5% over the last decade. High structural unemployment remains a critical challenge, with the official national rate at 32.9%, rising to over 60% among youth aged 15-24. In an effort to rein in fiscal deficits, the government has proposed a reduction in the real value of social welfare transfers and cash grants received by millions of vulnerable families. Concurrently, rising domestic inflation has eroded the real purchasing power of low-income households, limiting their capacity to consume basic goods.