Report on economic and social conditions in Southern Africa 2013

Abstract

The subregion’s growth rate of about 4 per cent in 2012, though higher than the global growth rate of 3.3 per cent, was lower than the 5.6 per cent and 5 per cent recorded in 2010 and 2011, respectively. The major risk to the global economy is the weaker eurozone economy and lower than anticipated growth among emerging economies. Primary commodity prices however remained buoyant; hence commodity exporters in the subregion performed better than during the 2009 crisis, resulting in significant windfall gains for exporting countries. The management of the windfall revenues will have significant effects on future real GDP growth of these economies. However, the subregion remains highly vulnerable to price fluctuations. On the social front, unemployment remains, especially among the youth, a critical challenge for many countries, and has the potential to be a source of instability if not addressed. Most countries remain off track in as far as the attainment of the Millennium Development Goals (MDGs) by 2015 is concerned. In going forward, member States must deliberately link economic and social development goals to poverty alleviation and job creation, and also ensure inclusive and sustainable growth and development.