Related Articles
Top Stories
May 27 2012 11:21
There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.
May 27 2012 13:09
The oversupply of golf estates has claimed another victim.
May 27 2012 11:49
The country's 200 000-odd Tupperware agents are angry about the counterfeit products being sold as the real McCoy.
Johannesburg - South Africa, which was ranked 40 in
2005 in the
World Economic Forum's Global Competitiveness survey, has fallen back to 45th place, according to the 2006 report released on Tuesday.
"Strong global growth and high commodity prices, combined with buoyant consumer demand have enabled South Africa to grow at a robust rate exceeding 4% since 2004, set to continue this year," said the WEF.
However the WEF added that there were still many problems to be overcome, not least of which was a striking dichotomy between first and third world characteristics.
"Despite significant achievements since the ending of apartheid in 1994, South Africa is in many ways still struggling with its legacy, including gross inequalities, high unemployment, major skill shortages, and a striking dichotomy between first and third world characteristics," said the WEF.
The WEF added that entrenched inequalities acted as a deterrent to growth, development, employment creation and poverty eradication.
"While economic growth is essential, it is not a guarantee of employment creation, and South Africa's unemployment situation is grave," the WEF said.
The countries that have moved above SA now are Barbados (new entrant at 31), Qatar (now 38, previously 48 - move in part due to Sasol Oryx project), Malta (39, previously 44), India (43, previously 45) and Kuwait (44, previously 49).
The report also showed the United States falling to sixth place, ceding the top place to Switzerland, as macroeconomic concerns eroded prospects for the world's largest economy.
Behind Switzerland, Finland, Sweden, Denmark and Singapore made up the top five spots.