2021 was a year that Economics profs will be talking about for some time to come. The economy started to grow again after a 6.4% contraction due to the Covid-19 pandemic. Mining and agriculture carried the South African economy and saved the budget. But the growth did not have a broad base, unemployment continued to increase and business confidence remained low. Internationally, inflation has started to rise and interest rates are following.
Commentators often say that the economy is at a crossroads, but this time it may be more like a T-junction. There is no way we can muddle through. Important and difficult choices have to be made.
