Despite tailwinds, South Africa’s recovery could fade into ‘another lost decade’ without …

The World Bank expects South Africa to grow by 4% in 2021, supported by the strong global economic recovery from Covid and favourable commodity prices. However, the bank also warns that the medium-term outlook remains uncertain and will depend largely on whether the country is able to implement deeper economic reforms that support job creation and entrepreneurship. In its thirteenth South Africa Economic Update, released on July 12, the bank shows that the 2021 rebound, which follows the dramatic 7% contraction of 2020, is being underpinned by strong recoveries in key trading partners such as China and the US, as well as a marked improvement in its terms of trade.