Macroeconomic Analysis

Macroeconomic Analysis

Macroeconomic Impact Studies are comprehensive assessments typically commissioned by large corporations, industry associations, or government entities seeking to understand their broader contribution to the economy. These studies serve a variety of strategic purposes such as supporting public relations efforts by showcasing the organization’s value to society, informing regulatory or policy discussions, or strengthening engagement with key stakeholders including investors, communities and government agencies.

At the core of macroeconomic impact analysis is the quantification of direct, indirect and induced economic effects. The direct effects refer to the immediate economic activity generated by the organization’s operations, such as employment, procurement and capital expenditure. Indirect effects capture the broader economic activity stimulated across supply chains, while induced effects account for the additional economic activity resulting from household spending by those employed directly or indirectly.

These interrelated effects are examined within a structured macroeconomic framework that reflects the dynamic linkages between government, business and households. The primary metrics used to express this contribution include the contribution to Gross Domestic Product (GDP), employment impacts (including both direct jobs and those generated via multiplier effects), tax revenues (including corporate, income and indirect taxes) and household income.

To accurately quantify these effects, StratEcon employs input-output multipliers derived from the latest Social Accounting Matrices (SAMs) specific to the country or region under analysis. These SAMs capture the flow of all economic transactions within the economy and provide a robust foundation for multiplier-based analysis. StratEcon categorizes client expenditure across relevant sectors, such as construction, manufacturing or services, for example, and applies appropriate multipliers to estimate the total economic impact.

The results are synthesized into clear, digestible outputs, typically presented in both graphical and tabular formats, providing a compelling narrative supported by quantitative evidence. This approach ensures that findings are not only analytically rigorous but also accessible to both technical and non-technical audiences.

Some of our Larger Projects and Clients are:

The biannual assessment of the V&A Waterfront and its contribution to the Western Cape and South African economies.
The quaterly and / or semi-annual economic performance of the Saldanha Bay Industrial Development Zone.
Wesgro for the annual contribution of the Western Cape cruise liner industry.
Property Point, an enterprise development initiative created by Growthpoint Properties, for the contribution of its Enterprise Development and Supplier Development programmes to the South African economy.
Vumatel for rolling out fibre to the home in Mitchell’s Plan and Blue Downs, Cape Town.
The development of a Computerised General Equilibrium (CGE) model for the Electricity Control Board of Namibia, quantifying the impact of new electricity generation options and tariff increases on the Namibian economy.
Vodacom South Africa, including the productivity impact of mobile telephony.