Country Analysis -- Composition of South Africa's GDP

South Africa Per Capita GDP (USD)

South Africa GDP (Million USD)

 Source: OECD Database

  

Analysis of the breakdown of GDP

  Source: Worldbank database

Household Expenditure: It consists of expenditures of resident households for consumption of both domestically produced and foreign goods and services. The relatively high percentage of household expenditure represents the high consumption power of local residents and the high reliance of economy on internal demand of goods and services. This datum at a certain extent reflects the income of South Africans is stable and quite high.

Government Expenditure: It consists of government expenditures on goods and services. Although the percentage of government expenditure is quite small compared to household expenditure. However, if compare the data of South Africa to the rest of the world, it can be observed that it has a relatively high percentage of government expenditure, which can mean government intervenes greatly into the market or spends a lot of money on national defense.

Net Export: It is given by deducting total import from total export. Negative number shows that the country has greater import volume than export volume, which may indicate that the country has a low level of national saving relative to investment as net export can also be expressed by the difference between national saving and investment– that means the country might be currently borrowing money from other countries.

Investment: Investment consists of the formation of capital. Investment represents deferred current consumption for increased future consumption thus such a level of investment is good for the country as it represents a relatively reasonable proportion of the country’s money is used for increased future production.