imports and put pressure on the country’s balance of payments. Previousy. 8outh Africa would simply increaee its foreign borrowings to offset current account deficit0 instead of slowing down the economy. Financial sanctions have deprived Bouth Africa of this option, and also made it more difficult for the country to repay its exieting indebtedness. Debt repnyment now requires a rurplus from trade, which of course is becoming much harder to earn. 8anctions. uncompetitiveness and volatile prices for primary exports mean that Boutt AiLicr oeu~noi rely on expanding its exports. Em aurhoritiss have been compelled to curtail importa tightening policy and slowing down the economy. In the last quarter of 1987 and 1988 it became apparent that it was impossible I... A/45/552 English Page 15 to create euatainable GDP growth in expce~~o of about 2 par ceut without averting preooure on the current account. Estinates bo to the rata of ennual GDP growth needed to meet the rapidly growing black umuployment vary frcm a low 3.5 per cent-4 per cent to 6 per cent at the higher eud of the range. B. the wt of s&h&&8 37. The fact that much of South Africa’0 borrowingo had been in the foam of short-term loane made it even nore vulnerable to loso of international financial confidence. The Sharpeville killings of 1960 and the 1976 repreooion of the Soweto rioto had cauned a ohift fram medium- and long-term lending to short-term debt. In the face of international preeesure againat direct lending to the Pretoria r6gime, there was a shift to private interbank lonne which helPed diaguiee these trannsections. 3s. Political unr.et following conotitutional chengee in 1983 end election8 in 1984, repreesion and the declaration of the firet atate of emergeucy in July 1985, end m&sequent preosureo for sanctions, all contributed to eubetantial outflowe of capital and ceeoation of loam to South Africa. 
**Analysis**
The text discusses the economic challenges faced by South Africa due to financial sanctions, uncompetitiveness, and volatile prices for primary exports. It highlights the country's struggle to maintain a balance of payments, repay its debts, and achieve sustainable economic growth. The text also mentions the impact of international pressure on South Africa's economy, including the shift from medium- and long-term lending to short-term debt.

**Category**
International trade, Economic development