OECD Economic Surveys : South Africa 2022.

Format:

Book

Author/Creator:

OECD.

Organisation for Economic Co-operation and Development, author, issuing body.

Series:

OECD Economic Surveys: South Africa

Language:

English

Subjects (All):

Economic surveys.

Physical Description:

1 online resource (151 pages)

Edition:

1st ed.

Other Title:

OECD Economic Surveys

Place of Publication:

Paris : Organization for Economic Cooperation & Development, 2022.

Summary:

The COVID-19 crisis has weakened an already fragile economy. South Africa's growth underperformed during the past decade: GDP per capita was already lower in 2019 than in 2008. Unemployment remains high, at around 35%, and youth unemployment even exceeds 50%. In the meantime, spending pressures are mounting to close the financing gap in health, infrastructure and higher education.

Contents:

Intro

Foreword

Table of contents

Basic statistics of South Africa, 2021

Executive Summary

A strong recovery but risks remain

Maintaining the credibility of monetary policy and improving public spending

Making growth more inclusive

Boosting productivity to improve living standards

Making growth greener

1 Key Policy Insights

The recovery is under way, but risks are on the downside

The health system was put under pressure by the pandemic crisis

The economic recovery is led by private consumption and external demand

Risks to the outlook remain high

A balanced macroeconomic policy mix is necessary to promote growth

Slightly accommodative monetary and prudential policies remain relevant

The banking sector has weathered the crisis

Stabilising public debt requires higher growth and increasing government revenues

Managing spending pressures will not be sufficient

Reforming state-owned enterprises is necessary to reduce their fiscal impact

Fighting corruption is key

Increasing tax revenues while reducing inequalities and boosting growth

Strengthening post-COVID 19 social policy

Reforms for strong, fast, and inclusive growth

Lifting the electricity shortage's drag on growth

Mitigating climate change: transitioning to net zero

Infrastructure investment is needed to lift productivity

Developing public transport infrastructure is needed

Labour market reform can help raise employment

The pandemic worsened already dire labour market outcomes

Gender differences in the labour market remain high

Informality and employment growth

Compliance with the new national minimum wage is low

Tackling skills mismatch and easing school to job transitions

Reducing labour market rigidities

Boosting the take up of the employment tax incentive.

Easing access to jobs: information, distance, placement

Strengthening activation policies

Main findings and recommendations

References

2 Strengthening the tax system to reduce inequalities and increase revenues

The challenges of a tax reform

Tax revenues remain stable but are slightly tilted toward direct taxes

Designing tax policy reform

Broadening the personal income tax base would improve its progressivity

The base of the personal income tax system is narrow

Increasing the progressivity of the personal income tax schedule to reduce income inequalities

Income tax, transfers, and participation to the labour market

Broadening the corporate income tax base to reduce the tax rate

Corporate income tax revenues and rate are relatively high

Reducing tax deductions would allow reducing the headline tax rate

Tax incentives and investment

The new international two pillar tax and corporate taxation in South Africa

Reforming the taxation of SMEs

Revenues from natural resource extraction could be increased

Taxes on goods and services are large and effective

The VAT system performs relatively well

Other indirect taxes contribute significantly to government revenues

Excise taxes raise significant revenues

Trade taxes remain significant

Strengthening the tax system to cope with new challenges

Environmental tax policy

Improving digital economy taxation to avoid revenue leakage

Strengthening international tax co-operation to fight tax evasion

Improving the taxation of wealth to reduce inequalities

Wealth inequalities are high

Improving tax collection on wealth

Reforming wealth taxes to reduce inequalities

Improving the efficiency of the tax administration

3 Boosting productivity to improve living standards.

Low productivity growth undermines improvements in living standards

Raising the efficiency of public investment in transport infrastructure

Road infrastructure investment and governance must become more efficient

Alternatives to road should further be developed

Anti-corruption provisions reduce inefficiencies surrounding infrastructure projects

Lowering regulatory barriers to private investment

Bridging the telecommunication gap

Stepping up R&amp

D support

Improving access to finance for start-ups and SMEs

Removing obstacles for firm dynamism

Boosting market competition

Leveraging the regional participation in global value chains

Supplying high quality human capital to the labour market

Increasing the quality of basic education and reducing inequalities

Expanding access to higher education

The Community Education and Training system remains underdeveloped

Addressing skills imbalances

The healthcare system should be reformed

References.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

92-64-66408-4