The Impact of the Global Financial Crisis on the South African Economy

The South African economy was in a state of crisis before the global financial crisis. The official unemployment rate has remained well over 20 per cent over the past decade. Employment has declined in manufacturing, indicating deindustrialization of the economy. Services employment grew, but this growth was not due to growth in productive services but instead seems to have been driven by acceleration in debt-driven consumption, outsourcing and growth in private security services.