Lucintel Analysis: Service Sector to be Major Contributor to South African GDP

Irving, TX, June 28, 2014 --(PR.com)-- The South African economy is considered an upper middle income economy in Africa. The country is estimated to continue a growth path and reach $500.1 billion by 2018. South Africa has grown more rapidly compared to the other countries on the continent, mainly because of economic diversification. The service sector is the major contributor the country’s GDP. In this sector, financial, real estate, and business services are the key sectors, followed by wholesale and retail industry.

Lucintel, a leading global management consulting and market research firm, has conducted a competitive analysis on the risk factors of the country and presents its findings in “PESTLE Analysis of South Africa 2013.” The report analyzes the political, economic, social, technological, legal, and environment situations in South Africa.

The report describes that due to global economic crises and high growth in population, South Africa is facing a problem regarding a high unemployment rate. If the crisis continues to prevail, the unemployment level will rise, weakening domestic demand. A high fiscal deficit is another serious challenge for the South African government, as it exceeded the government’s target in 2012. Further increases in the fiscal deficit could hamper the economic growth and credit rating of the country.

The study reveals that a highly young population is the key driver of South Africa’s future growth. The dominance of a younger population leads to strong domestic demand, especially for consumer durable goods, finance, insurance and food, and accommodation services. Investment opportunities are available in renewable energy, healthcare, and biomedical research industries, as the government has recognized various measures for development of these important areas.

This report analyzes the impact of different macroeconomic indicators of the country and the effect of socio-political-demographical changes on different industries. The report also examines domestic and external economic trends, government policies, technological changes, and their impact on South Africa’s economy. In the current economic scenario, real estate, finance and insurance, accommodation, and food industries are likely to be mostly affected. Most sectors are open for foreign direct investment and are attracting foreign institutional investors as well.

For a detailed table of contents and pricing information on this timely, insightful report, contact Lucintel at +1-972-636-5056 or via email at helpdesk@lucintel.com. Lucintel offerings include SWOT Analysis, Target Screening, and Merger and Acquisition Consulting.

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