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A recession is defined as two consecutive quarters of falling economic output. South Africa averted that by the narrowest of margins.
South Africa’s economy narrowly avoided a technical recession in the fourth quarter of last year, according to the latest data released. Figures unveiled by Statistics South Africa showed that the economy grew by just 0.1 percent every quarter, following a 0.2 percent contraction in Q3.
A recession is defined as two consecutive quarters of falling economic output. South Africa averted that by the narrowest of margins.
As a whole, real annual GDP grew 0.6 percent in 2023, in line with a National Treasury forecast, indicating a significant slowdown from 2022’s 1.9 percent growth. The forecast of GDP growth for 2024 is somewhere between 0.7 and 1.5 percent, which is insufficient to enable the government to address major challenges including extremely high levels of unemployment, poverty, and inequality.
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The Africa Center for Strategic Studies says the elections represent an assessment of how the ruling African National Congress (ANC) is addressing the evolving social and economic challenges facing the country. Analysts are predicting the 29 May polls will see the ANC lose its parliamentary majority for the first time since the end of apartheid.
