South Africa: Economic Data for SA Isn't Shooting the Lights Out - and That's Before Load Shedding Stage 6


The data so far for South Africa's fourth quarter, which reflects pre-stage 6 load shedding, suggests that even without Eskom, the economy is probably in a recession.

The data that has been trickling in for the fourth quarter is already beginning to confirm what many fear: that Africa's most industrialised economy is mired in a recession, making the prospect of further rating downgrades more likely.

The economy contracted 0.6% in Q3, so a follow-up shrinkage will mean a recession -- the second in two years after almost a decade of growth that was generally sluggish, but never tagged by the dreaded "R" word.

The data released on Thursday -- not via the usual medium as Statistics South Africa's website was down because of technical issues -- suggests that even without the added burden of load shedding, the economy is hardly shooting the lights out.

Output in the key mining industry in October decreased 2.9% year-on-year, a sharper decline than economists had anticipated while maintaining its downhill trajectory. Fast forward to this week and several mining companies, including Impala Platinum and Sibanye-Stillwater, had to temporarily close shafts because of Monday's unprecedented round of stage 6 load shedding. So unless November's numbers...

See What Everyone is Watching

More From: Daily Maverick

Don't Miss

AllAfrica publishes around 600 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.