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S.Africa's GDP fell below pre-pandemic levels: data
Uwajeneza Donatha
Mar 7, 2023 - 11:35
South Africa's economy shrank 1.3 percent in the final three months of 2022 to return below pre-pandemic levels as record power shortages hit activity, official data showed Tuesday.
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"After rallying in the third quarter of 2022, South African gross domestic product (GDP) declined by 1.3 percent in the fourth quarter," the national statistics agency StatsSA said, adding that "GDP fell below pre-pandemic levels".
The trade and finance sectors were the biggest contributors to the economy's decline.
The slump compares to the 1.6 percent seasonally adjusted quarter-on-quarter growth rate from July through September.
Growth in Africa's most industrialized country was weighed down in the final quarter by unprecedented levels of power outages. Only two days were spared the staggered blackouts during the last three months of last year.
State-owned energy firm Eskom, saddled with constantly breaking down generating plants, is failing to meet demand.
South Africa's economy was badly hit by the Covid-19 pandemic, which amplified joblessness and poverty, in one of the world's most unequal countries.
Economic growth slowed for about two years.
After the economy returned to its pre-pandemic size in the first quarter of 2022, growth has been hampered by floods and an energy crisis.
Economic growth is forecast to be as low as 0.3 percent in 2022 due to the electricity supply crisis, according to the central bank, down from 2.5 percent in 2022.
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