Stats SA GPD data: Impact of energy, logistics challenges expected to take centre stage
The data for South Africa’s fourth quarter of 2023 is expected to decide if the country sinks into a technical recession.
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JOHANNESBURG - The impact of the country’s energy and logistics challenges is again expected to take centre stage when Statistics South Africa (Stats SA) releases the latest gross domestic product (GDP) data on Tuesday.
An unreliable electricity supply and constraints at Transnet continue to derail the economy, hampering growth in major industries.
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The fourth quarter reading is expected to decide if the country sinks into a technical recession or if the economy is resilient enough to avert another contraction.
On the production side of the economy, during the third quarter, five out of 10 industries were weaker.
At the time, agriculture showed a substantial drop in output, leading to the losses seen in the GDP contraction of 0.2%.
Poorer performance in manufacturing and construction also remains a concern.
On the demand side, high interest rates are still expected to slow consumer spending.
Despite this, some economists forecast a slight expansion for the final quarter of 2023, with mining showing some improvements.
If that’s the case, then the Bureau for Economic Research said South Africa would have narrowly averted a technical recession.