# Presentation: 216401

## Economic Highlights

Ten year average real GDP growth: 3.2% (2005)
Rand (R) appreciation vs. US$: 40% 2002 to 2005 
Targeted inflation at 3.9% and prime interest rate down to 10.5% (2005)
S.A. accounted for 39% total Sub-Saharan Africa GDP (2005)

- Ten year average real GDP growth: 3.2% (2005)
- Rand (R) appreciation vs. US$: 40% 2002 to 2005
- Targeted inflation at 3.9% and prime interest rate down to 10.5% (2005)
- S.A. accounted for 39% total Sub-Saharan Africa GDP (2005)

| (Billions) | 2004 |  | 2005 |
| --- | --- | --- | --- |
| Nominal GDP ($) | $ 215.0 |  | $ 239.5  |
| Nominal GDP (R) | R 1,386.7 |  | R 1,523.3 |
| Real GDP, 2000 Prices (R) | R 1,056.8 |  | R 1,108.8 |
| Real GDP % Change (R)
 | 4.5% |  | 4.9% |
| 
Population (millions) | 
46.6 |  | 
46.9 |
| Real GDP Per Capita ($) | $  3,516 |  | $ 3,717 |
| Purchasing Power Parity Gross National Income Per Capita ($) | $ 10,960 |  | NA |

_**Development Figures**_
- S.A. suffers from high unemployment and one of the most unequal income distributions in the world
- Human Development Index (2005): 120 out of 177 countries

| Unemployment 2005: |  |  |  |
| --- | --- | --- | --- |
| Narrow Definition |  | 26.7% |  |
| Broad Definition
 |  | 38.8% |  |
| Gini Co-efficient: |  |  |  |
| 1 = Complete Income Inequality; 0 = Complete Income Equality
 |  |  |  |
| South Africa (2003) | 0.64 |  |  |
| Brazil (1998) | 0.59 |  |  |
| United States (2000) | 0.41 |  |  |
| Japan/Denmark/Hungary (1993-1998) | 0.24 – 0.25     |  |  |

*Sources:*
*	**South African Reserve Bank*
*	**Statistics SA*
*	**South African Revenue Service*
*	**South African Institute of Race Relations*
*	**The World Bank*
*	**Human Development Report*
*	**U.S. Department of Commerce*

_**Primary:**_  Agriculture, Mining
_**Secondary:**_  Manufacturing, Construction, Utilities
_**Tertiary:**_
- Trade, Transport, Services

_**Industry Sectors**_

- 

## U.S.-South African Trade

_**U.S.-South African Trade**_
- U.S. is a top 3 import/export partner of S.A. (2005)
- S.A. exports to U.S. were $5.9 billion in 2004 and 2005, after an increase of 21% from 2003 to 2004
- S.A. AGOA exports to U.S. were $1.5 billion in 2005

| ($ Millions) |  | 2004 |  | 2005 |
| --- | --- | --- | --- | --- |
| S.A. Exports to U.S. |  | $ 5,926 |  | $ 5,854 |
| S.A. Imports from U.S. |  | $ 2,977 |  | $ 3,652 |
| Total Trade U.S./S.A. |  | $ 8,903 |  | $ 9,506 |
| 
Total U.S. Trade with Sub-Saharan Africa |  | 
$ 44,318 |  | 
$ 60,604 |
| S.A.’s share of U.S. Sub-Saharan Africa Trade |  | 20.1% |  | 15.7% |

_**U.S. Investment in South Africa**_
- U.S. is the largest portfolio investor in S.A.
- U.S. is the second largest source of foreign direct investment (FDI) in S.A. after the U.K.
- Total U.S. FDI Dec. 31, 2004 = $5 Billion

| (R Billions) |  | 2003 |  | 2004 |
| --- | --- | --- | --- | --- |
| FDI |  | R 303.5 |  | R 355.1 |
| Portfolio |  | R 307.1 |  | R 352.2 |
| Other (loans) |  | R 151.0 |  | R 150.8 |
| Total Foreign Investment in S.A. |  | R 761.7 |  | R 858.0 |
| U.S. % of FDI |  | 9.7% |  | 8.8% |
| U.S. % of Portfolio Investment  |  | 42.5%
 |  | 41.2% |
| U.S. % of Total Foreign Investment |  | 23.5% |  | 22.1% |

*Note:  Rand amounts converted to dollars using annual average rate*