S. Africa’s Economy Expected to Reach Two Percent Growth by 2028

RunWithRugs · 2026-03-01T09:07:06+00:00

South Africa's economy is projected to grow steadily, reaching 2% by 2028, supported by a recovery from the pandemic. Despite ongoing challenges, improving growth could help reduce high unemployment rates.

RunWithRugs

2026-03-01 09:07:06

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(MENAFN) South Africa’s economic growth is forecast to rise steadily, reaching 2% by 2028, according to projections from the National Treasury. The outlook reflects an annual increase of roughly 0.2 percentage points.

The positive forecast follows a GDP rebound in 2022, when the economy expanded by about 2.1%, largely as a result of recovery from the Covid-19 pandemic. Achieving similar growth rates in the coming years could ease the country’s persistent unemployment, which remains above 31%.

Finance Minister Enoch Godongwana highlighted during a National Budget Review that domestic growth prospects are improving, supported by a stabilizing global economy despite ongoing geopolitical tensions affecting trade and supply chains.

“We project real economic growth of 1.6% in 2026, an improvement from the 1.4% estimated in 2025,” Godongwana said. He attributed the upward trajectory to stronger economic performance in the second half of 2025 and noted that average growth is expected to reach around 1.8% in the medium term before hitting 2% by 2028.

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