south africa

South Africa Cuts Interest Rates To Adjust Inflation

Following a slight recession earlier this year South Africa has cut down the interest rates, though surprisingly, for the first time in five years.

South African Reserve Bank has earlier been prioritizing to bring down the inflation rate that was 7 percent in 2016.

South African economy is second largest after Nigeria in Africa. It is most developed, but in March this year entered recession, first time in about a decade. World Bank has ranked it as an upper-middle-income economy and it accounts for 35 percent of the continent’s gross domestic product.

Investors’ confidence has been lately dented due to government corruption and bitter leadership contest in the ruling party.

Political tensions were on the rise in April this year and led to the sacking of nine cabinet members by president Jacob Zuma including Finance Minister Pravin Gordhan.

The country is presently suffering from significant unemployment. More than 25 percent of people are jobless and crime is considered a severe constraints on investment.

South Africa enjoys diversified economy like agriculture, fisheries, mining, textiles, telecommunication, energy, tourism and transportation.

Mining has been one of the main driving force in the development of the country’s economy.

However, lately the country has become popular tourist destination and most of them are from non-African countries.

United States, United Kingdom, China, Japan, Germany and Spain are the main international trading partners of the country and some of the major exports include gold, fruits, diamonds, corn, sugar, wool, metals and minerals.

In terms of education South Africa ranks poorly.

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