Growth Benefits of Macro-Structural Reforms in South Africa: South Africa
March 31, 2025
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South Africa's economic growth has stagnated over the past decade due to entrenched structural rigidities. This paper examines the impact of reforms addressing shortcomings in governance, business regulation, and labor market on output and employment. The analysis quantifies the potential economic gains from narrowing structural gaps in these three areas relative to peer countries. Reforms in governance and business regulation are found to boost medium-term output by up to 9 percent. Complementary labor market reforms could further bolster these gains and enhance employment. These findings emphasize the importance of a well-prioritized reform agenda to unlock South Africa’s growth potential and generate broad-based improvements in living standards.
Subject: Business environment, Economic sectors, Employment, Labor, Labor markets, Macrostructural analysis, Structural reforms
Keywords: Africa, Business environment, business regulation, business regulation reform, economic growth, Employment, Global, governance, governance reform, growth potential, ILO stat, labor market, Labor markets, macro-structural reform, productivity, reform agenda, reforms in governance, South Africa, structural reforms
Pages:
21
Volume:
2025
DOI:
Issue:
023
Series:
Selected Issues Paper No. 2025/023
Stock No:
SIPEA2025023
ISBN:
9798229005784
ISSN:
2958-7875
