- Load shedding helped push the economy into decline in the second quarter of 2022
- Mining production fell by a huge 8% in June year on year, and manufacturing by 3.5%
Mining production fell by a huge 8% in June year on year, and 7.2% in May.
Manufacturing was down 3.5% in June y/y, according to the latest numbers from Statistics South Africa.
He interviews Thanda Sithole, senior economist at FNB.
Sithole details how the drop in both mining and manufacturing output quarter on quarter, impacted South Africa's GDP.
The numbers were really negative for us. I think we've been always of the view that Quarter 2 outcomes would be very poor as a result of KZN flooding as well as load shedding intensity, so these numbers are confirming that view.
Thanda Sithole, Senior Economist - FNB
If you look at the quarter on quarter growth of both mining and manufacturing output, they really indicate that GDP growth contracted by more than is expected.
Thanda Sithole, Senior Economist - FNB
Our expectation is that on average it should shave around 0.4% from annual GDP growth, but the cumulative impact is much higher - it could be as much as 1.5 percentage points.
Thanda Sithole, Senior Economist - FNB
Yes, power supply disruptions have been a constraint but we do think that with the recent energy market reforms that things, over time... should improve.
Thanda Sithole, Senior Economist - FNB
Scroll to the top of the article to listen to the conversation
This article first appeared on CapeTalk : Drop in mining output shows crippling cost of load shedding for SA economy
