Economics Case

Introduction

This essay is all about the dynamic environment as we mainly focus on South African economic goals which are economic growth, unemployment and price stability. The question is: Are we following these policies in achieving the mentioned three economic goals? The most pressing problem facing South Africa today is the absence of sustained economic growth, job creation and price stability. These three factors are essential to reduce poverty and improve living conditions, but what lies ahead is the daunting task of ensuring that South Africa’s rich natural and human resources are employed for the benefit of all, promoting sustainable livelihoods, improving and controlling price stability. Do these South African policies adhere to these different problems we facing? Are they achieving these economic goals?

Discussion

No, from my own opinion, I think South African policies are not achieving our economic goals. To prove my opinion, as we look at the economic growth, it was expected to average 2.5%, down from 3.1% from the previous year according to the state of nation address 2013. Guidelines for using charts and graphs. 2013. [Online]. Available: http://www.info.gov.za/speech [2013, February 14]. In other words our economic growth is not growing; however, the growth-and-employment challenge facing South Africa is a daunting one. Investments rates are low, FDI inflows are disappointing, and the unfinished agenda of structural reforms leaves South Africa at a disadvantage within an increasingly competitive global environment. This again will lead to a lack of economic growth.

If we look at the financial stability of South Africa, which in this case follows under the inflation, one of the factors mentioned in our main question. Monetary stability is directly proportional to the inflation of the country. “Financial stability can further be described as the absence of macroeconomic costs of disturbances in the system of financial