domeotic fixed investmsnt in GDP growth hao oteadily declined. Deopfte low interoet rate8, gross domeotic fixed inveotment fell steeply by 31 psr cent (+n real terms) between 1981 and 1987, reflecting lose of buaineoe cmfidance. Thie drop hae been eteepeet in manufacturing where productive investment hao even failed to keep up with depreciation. The result bae been shrinking capacity, reduced production, loos in international competitfvity, and a further loss of unemployment. In tbe 19808, xnemploymant eoarsd to its present level of 25 per teat to 30 per c4nt. In practical ecoaumic terms, th4n. diainvestnumt by domestic and foreign comp~aies aliks had bsgun long before the public campaign for sanctions and disinv8crtatent had any impact. b long 8s South Africa had ready acceea to foreign capital, however, it could ._ mgwk these alsroriiirnii tn fts w-.-ro- ---*(-u- end *nvaatment etructure by borrowiag more heavily abroad. I... A/45/552 English Page 14 32. The underlying defect in the South African economy lies in its export structure. South Africa is heavily dependent on foreign trade which accounts for 60 par cent of annual GDP. semi-processed products: IIxport earnings are derived from primary and minerals account for over 80 per cent, gold alone for over 40 per cent. Indeed, apart from foreign borrowings, boosts in gold priceo have been the major factor in helping South Africa maintain equilibrium in its balance of payments. By contrast, manufacturing has failed to be competitive on the %rorld market. Because of small domestic markets and ocarcity of skilled labour. results of a system that keeps the masses of blacks impoverished and uneducated, the manufacturing sector has not been able to attain economies of scale or accumulate domestic technological expertise. 33. Thio dependence on primar; exports renders the South African economy vulnerable to changes in the economies of its major trading partners and to 
**Analysis**
The text primarily discusses the economic issues facing South Africa, specifically the decline of domestic fixed investment, the dependence on primary exports, and the impact on employment and international competitiveness. It also touches on the country's lack of manufacturing competitiveness and the need for domestic technological expertise. These themes suggest that the category should be related to economics and industry.

**Category**
Economic development, Industry