Data released by Statistics South Africa shows that the country’s economy contracted by 1.3% in the fourth quarter of 2022.
Contributions to the decrease in the fourth quarter of 2022 came from the mining, agriculture and manufacturing industries.
The statistical body further notes a slowdown in economic activities in the finance, real estate and business services industries.
The data indicates that the economy grew by two percent for the full year of 2022.
A chief economist at Investec, Annabel Bishop, says economic growth in 2023 is expected to be flat due to the ongoing energy crisis.
Bishop says, “We think growth will come out at 0.5% in 2023, we have a year ahead of severe load shedding which will damage economic activity in South Africa and of course as well economic growth forecasts have been revised down since the start of the year.”
“Early January expected economic growth to be 1.1% now we’re expecting it to be 0.6% and unfortunately much will depend on the stages of load shedding that South Africa sees averaging for this year in terms of what happens for the economic outcome.”
