South Africa's rigid labour market to hold back growth

The latest round of biennial economy-wide wage negotiations in South Africa could be the catalyst for a renewed flare-up in labour unrest. But they are also likely to cast a spotlight on the country’s structurally high rate of unemployment and its lack of progress on labour market reform. Indeed, this is a key reason why we think economic growth is unlikely to exceed 3% in the medium term, and why we expect South Africa to remain the region’s laggard.