· There is concern over the contraction of South Africa’s GDP in quarter two. The results showed that Gross Domestic Product for quarter two shrunk by 0.7% after two consecutive quarters of positive growth.
There is concern over the contraction of South Africa’s GDP in quarter two. The results showed that Gross Domestic Product for quarter two, shrunk by 0.7% after two consecutive quarters of positive growth.
Expressing concern over the development, Minister in the Presidency, Mondli Gungubele, attributed the contraction of the GDP to factors such as power shortages, the floods in KwaZulu-Natal and Eastern Cape, as well as the higher cost of living and inflation. Manufacturing is the largest industry in KwaZulu-Natal and the impact on factories and plants, and disruptions to logistics and supply chains, hit the national manufacturing output by 5.9%. The statement issued by the Government Communication and Information System (GCIS) said that the situation was further complicated by global developments that pushed the food and fuel prices, that were beyond the control of the national government. GCIS said that the priority areas of the Economic Reconstruction and Recovery Plan, such as mass public employment, economic reform and infrastructure development, are having an impact on job creation.
The Statistician-General stated that though the country experienced slow growth and rising unemployment, the economy remained resilient.
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