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So with the publication of the latest GDP numbers (Q4:2017) the latest numbers in terms of each province in South Africa's economic size was published. And we take a look at the evolution of the size of the provinces over time on a simple bar chart. Simple but effective in not only showing the relative size of the provinces but also in providing a visual cue as to whether a province's contribution to SA's economy has been growing in importance or declining over time.
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Correction issued:
Thanks to Johann Biermann (Twitter handle: @Johannbiermann1) for notifying us of a mistake corrected paragraph in blue and italic. Johann is creator of GrafiekRetoriek (www.grafiekretoriek.com)
Is Gauteng still South Africa's economic hub?
While people flood to Gauteng in search of jobs, and Gauteng's unemployment starts to increase as it cannot supply jobs to all those coming into Gauteng, the question is whether Gauteng is still the economic hub of South Africa, or is a province such as the Western Cape catching up to Gauteng? Well the graphic below takes a look at the contribution to South Africa's economy per province for 5 different time periods. So is Gauteng still the economic hub? The image below will answer that question.
From the graphic above it is clear that South Africa's economy is dominated by three provinces. They are Gauteng, Western Cape and KwaZulu-Natal. A surprise to a number of people would be the fact that KwaZulu-Natal contributes more to South Africa's economy than the Western Cape. As at end of 2016, KZN made up 15.97% of SA's economy while the Western Cape at the end of 2016 made up 13.88% of South Africa's economy.
The graphic also shows that the three biggest provinces in terms of economic size has been increasing in relative importance from 1995 to 2016. Gauteng and Western Cape has been growing strongly, while KZN has grown in relative importance in SA's economy but not at the same rate that Gauteng and Western Cape has.
Sadly where there is development and improvement in the relative size of he biggest provinces in South Africa, it means that some of the smaller provinces has declined in terms of economic importance in South Africa. The Eastern Cape, North West and Free State showing the biggest declines in relative economic importance over time.
Below a summary of the relative size of each province in South Africa's economy for the year of 2016:
Gauteng : 34.95%
KwaZulu-Natal : 15.97%
Western Cape : 13.88%
Eastern Cape : 7.59%
Mpumalanga : 7.20%
Limpopo : 7.14%
North West: 5.88%
Free State : 5.20%
Northern Cape : 2.19%
Basically Gauteng is more than double the size (in economic terms) than the 2nd biggest province (in economic terms) in South Africa, which is KwaZulu-Natal.
While KwaZulu-Natal is the 2nd biggest province we suspect that over the next 20 years it will be overtaken by Western Cape, as loads of investments are being made in the Western Cape, in particular the City of Cape Town. Only hope for KZN to keep 2nd spot is substantial increases in world trade, as the Durban Harbour is the lifeblood of KwaZulu-Natal's economy.
Sadly where there is development and improvement in the relative size of he biggest provinces in South Africa, it means that some of the smaller provinces has declined in terms of economic importance in South Africa. The Eastern Cape, North West and Free State showing the biggest declines in relative economic importance over time.
Below a summary of the relative size of each province in South Africa's economy for the year of 2016:
Gauteng : 34.95%
KwaZulu-Natal : 15.97%
Western Cape : 13.88%
Eastern Cape : 7.59%
Mpumalanga : 7.20%
Limpopo : 7.14%
North West: 5.88%
Free State : 5.20%
Northern Cape : 2.19%
Basically Gauteng is more than double the size (in economic terms) than the 2nd biggest province (in economic terms) in South Africa, which is KwaZulu-Natal.
While KwaZulu-Natal is the 2nd biggest province we suspect that over the next 20 years it will be overtaken by Western Cape, as loads of investments are being made in the Western Cape, in particular the City of Cape Town. Only hope for KZN to keep 2nd spot is substantial increases in world trade, as the Durban Harbour is the lifeblood of KwaZulu-Natal's economy.
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