Economics in Sa

The economy of South Africa has two different levels, one that can match other developed countries and the other with only the main infrastructure. It is as a result a productive and industrialized economy that shows many characteristics associated with developing countries, including a division of labour between formal and informal sectors and an uneven distribution of wealth and income. The primary sector   which is based on manufacturing, mining, and agriculture is well developed.
South Africa's road and rail network is among the best in Africa, supporting both the domestic and regional needs. The country also has several major ports that make it the central point for most trade in the Southern African region.

The South African economy has grown well over the last few years. Jobs were not difficult to find and salary increases were slightly higher than the inflation rate. The effect of this was that consumers started to believe that they were better off and this made them more confident about the future. During the same period consumers borrowed more money. This was mainly due to two reasons. Before the implementation of the National Credit Act it was very easy to borrow money because Credit Providers came looking for you and the second reason was that consumers felt confident that they would be able to repay these loans.
During 2008 when the recession started, most people where in shock. The cost of living increased by more than 15 percent and the average salary increase was considerably lower than the increase in the cost of living. This resulted in many consumers falling into arrears. All this change shocked consumers into action. They stopped applying for new loans and reduced spending where possible. Less money was spent of food and clothes. Plans for holidays were amended and consumers refrained from buying big ticket items. In a matter of months consumers became less optimistic about the future and many consumers