Abstract
The most powerful and the most developed economy of the continent, South Africa produces one fifth of its entire production. The gross domestic product (GDP) is four times that its southern African neighbours and covering around 25% of the entire continent's GDP. Following the expansion of the global economy, South Africa is acquainted with a real growth rate of GDP of 5%, in 2006 (SARB, 2007: S-148). South Africa's economy has been is an upward phase of the business cycle since September 1999 (the longest period of economic expansion in the country's recorded history). According to Fourie (2001: 89), "while the South African economy is relatively strong in the African context, in the world context it is small." Nevertheless, since 2004, GDE has exceeded the GDP, which means that South Africa exports less than it imports. South Africa is "living beyond its means" To a certain extent, this fact can be explained by a huge growth in the real final consumption expenditure by households.
