02/20/2026
South Africa demonstrated remarkable economic resilience in the face of global turbulence in 2025, successfully maintaining macroeconomic stability and keeping inflation under control. Despite this, the country still faces relatively slow economic growth, high public debt, and significant unemployment, especially among young people. There are also concerns about the reliability of key infrastructure— electricity, freight rail, ports, and water.
So, what can policymakers do? To help unlock South Africa’s significant economic potential, they should pursue policies that focus on low and steady inflation, a sound financial system, and healthy government finances, while stepping up reforms supporting stronger economic growth.
Read our latest Country Focus featuring Delia Velculescu, the IMF’s mission chief for South Africa, for deeper insights:
https://www.imf.org/en/news/articles/2026/02/19/cf-how-south-africa-can-unlock-its-economic-potential
