Business confidence in South Africa falls again | City Press

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Business confidence dipped slightly in May, largely because of load shedding, which continues to be a drain on the domestic economy

. The SA Chamber of Commerce and Industry , which released details of the business confidence index on Wednesday, found that developments regarding South Africa’s controversial position in the Ukraine war featured prominently in May.

Threats of losing out on lucrative trade agreements may dent an important element of South Africa’s economic relationships and wellbeing. This calls for government to ease speculations and remove lingering uncertainties. “During the first four months of 2023, South Africa had a trade deficit of R3.5 billion compared to a trade surplus of R78 billion for the corresponding period of 2022.”The substantial swing from a surplus to a notable deficit year-on-year reflects not only the effect of global trade on South Africa but also indicates the economic sensitivity of South Africa to international trade relations.

Meanwhile, seasonally adjusted mining output, which aligns with the official calculation of real quarterly GDP, increased by 1.8% month-on-month in April following an upwardly revised 6.9% month-on-month increase in March. Underpinning April’s expansion were five of the 12 mining divisions, including gold, which grew strongly by 27.4% annually and contributed 3.5 percentage points to the annual growth number. Followed by coal which, despite prices having tapered down, expanded by 12.5% year-on-year.

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