South Africa and the middle-income trap --- With a 5 year record of 0 to 1% economic growth (excluding 2020 which was actually worse, due to the pandemic with a -6.96 % GDP growth) it seems that South Africa is stocked in the middle-income trap. This challenge is faced by different countries that had considerable economic growth in the past, but now their growth rates are stagnant, as well as other productive sectors, such as labor, technological capacity and foreign trade. In the case of South Africa, according to Andreoni (2021), there are important signs of an ongoing process of premature deindustrialization caused by a lack of investment and innovation. In this sense, it is vital that South Africa, as well as other territories that suffer the middle-income trap, implement mesoeconomic policies that improve the infrastructure, education and technology of the nation.

Source author: Ricardo Daniel Delgado Muñoz rdelgado@sre.gob.mx