Macroeconomic Resilience: South Africa and Selected Emerging Market Economies

The chapter examines the macroeconomic resilience to shocks of South Africa and other emerging economies that the book compares South Africa with (i.e. Brazil, Nigeria, Malaysia and Poland). South Africa has been wrestling with the multifaceted issues characterised by high levels of poverty, inequality and unemployment. Moreover, South Africa must grapple with the issues of sluggish economic growth, poverty and inequality in the midst of domestic and global economic shocks. These challenges are rampant in numerous developing countries, especially emerging economies. As these emerging economies rise to prominence, they face increasing exposure to a range of economic shocks, whether they originate locally, regionally or globally. In this context, the chapter aims to explore their ability to withstand, recover from and prosper after facing such shock. The chapter uses descriptive statistics and Impulse Response Functions (IRFs) for a comprehensive analysis, revealing the evolving impact of economic shocks over time. This dynamic approach deepens the understanding of these economies’ responses, providing policy makers and researchers with crucial insights into their economic dynamics.