GDP shock as SA economy shrinks 1.3% | Business

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South Africa's economy shrank by 1.3% in the fourth quarter, much worse than economists expected. | News24_Business

It is also the largest contraction since the third quarter of 2021, when deadly riots in KwaZulu-Natal and Gauteng caused massive economic disruption. Seven of the 10 South African industries contracted in the last three months of 2022, Statistics SA reported on Tuesday. Record levels of power outages took a heavy toll, with only two days without load shedding in the whole quarter. Over half of the quarter's load shedding was Stage 3 and above.

"These paralysing disruptions hurt output and sales in all industries while driving up production costs across the board," the Nedbank Group Economic Unit said. Aggressive interest rate hikes also hit the economy. The finance, real estate and business services sector – the largest industry in South Africa - shrank by 2.3% in the fourth quarter of last year. This subtracted 0.6 of a percentage point from GDP growth.

Agriculture contracted by 3.3% due to weaker performances from field crops and horticulture products.The trade, catering and accommodation industry shrank by 2.1%, while mining output was also lower, due to a decline in the production of diamonds, iron ore and platinum group metals. The mining industry has been hit hard by Transnet's rail woes.

 

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_Business How is this a shock? Do economists not even live here and see the day to day decline, not to mention load shedding impacts and global financial markets / recessions etc. Our 'give me' population and useless government doesn't help either. Oh, and CyrilRamaphosa the useless.

_Business How is this unexpected? PresidencyZA sat by and did nothing while we sat in darkness.

_Business Thumamina minions are not even trying to defend CR17 anymore the are tired of this useless president we really miss msholozi.

_Business Self inflicted by poor leadership and bad decisions. Party before the people. A sad reality in SA

_Business South Africa under black ANC rule has become a racist cesspit ,lawless and very soon a pauper nation. This used to be a first rate country.

_Business Why shocked if businesses can't fully operate as loadshedded? It will get worse than this, bite the bullet!

_Business Shock?

_Business 👏👏👏

_Business Come look at your beautiful work, you're surely moving South Africa forward 🙄 MYANC CyrilRamaphosa PresidencyZA

_Business Eskom !!!! Loadshedding

_Business Im doing fine

_Business Ok, we're here If you're not ready to fight for what's yours then its best to leave now

_Business Lets wait for ANC to blame everyone but themselves for this. When is it ever going to end

_Business This first quarter is going to be a blood bath

_Business Not really a shock. Expect this number to worsen. What is worrying, is that our government is not equipped to lead us out of any crises

_Business sorry - after being an eternal optimist + believing CR must surely now realise this was his big moment - stick his neck out, Do the right thing for SAns, even if it means he falls on his own sword - but no, stayed true to form, disappointed/let down the people + country he serves

_Business Not likely to improve Eskom_SA can’t keep the lights on in summer so stage 8 for most of winter on the cards even with a minister of electricity who will an under study to the old dogs GM GP

_Business Prime opportunity for ANC and Cyril to appoint a minister of GDP. Loadshedding, lack of railways and crime definitely not taking the country forward. Public finances will tighten with less money for service delivery and much needed maintenance.

The_Reality_1 _Business Shock? Shock for whom?

_Business What’s the prediction for Q1 2023?

_Business Who you vote for has consequences.

_Business Ramaphosa is a failure.

_Business Proudly brought to you by the ANC!

_Business Surprise surprise 🙄

_Business And who to thank? The Putin supporting CyrilRamaphosa regime! Loadshitting on us all!

_Business thank you cANCer ANC

_Business Can't be a shock with no ELECTRICITY!

_Business How is that a shock? You think we'd be shooting the lights out when we can't keep the lights on?

_Business Really? Much worse than expected? Come now, be serious

_Business Electricity ! Electricity! Electricity

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