Load-shedding bites as economy contracts

The economy contracted 1.3% in the fourth quarter compared with the previous three months as rolling power cuts hurt sectors such as agriculture and mining, official data showed on Tuesday.

Seven of the 10 industries tracked by Stats SA shrank from October to December .

Stats SA figures showed the agriculture sector shrank 3.3% quarter on quarter, mining 3.2%, finance 2.3%, trade 2.1% and manufacturing 0.9%. The construction sector grew 0.5%.

The data was worse than the third quarter’s revised 1.8% growth in quarter-on-quarter and seasonally-adjusted terms.

Analysts had predicted a 0.4% contraction in October to December.

Load-shedding in the fourth quarter due to breakdowns at Eskom power plants, left households in the dark and hurt businesses of all sizes.

GDP grew 0.9% year-on-year in the fourth quarter, worse than forecasts for a 2.2% expansion.

The economy grew 2% in the 2022 calendar year.

Reuters