South Africa's economy grew a faster-than-expected 0.6% in the second quarter of this year on a quarter-on-quarter basis after expanding 0.4% in the first three months. The fact that paltry growth of 0.6% represents good news underscores just how badly this economy is performing.

After defying fears that the economy would fall into a recession in Q1, South Africa's economy has managed to grow for two straight quarters. But it is hardly shooting the lights out, with growth of 0.6% in Q2 following an expansion of just 0.4% in Q1 and a 1.1% contraction in the final three months of 2022.

The economy on a quarter-on-quarter, seasonally-adjusted basis grew 0.6% in Q2, beating the Bloomberg consensus forecast of 0.3% growth. The rand got a brief bump, rising to 19.18/dlr from 19.25/dlr earlier. But like a sugar high, the rally quickly lost steam in the face of the current grim reality of stage 6 power cuts.

"Six industries on the supply side of the economy grew in the second quarter, with manufacturing and finance driving much of the upward momentum. On the demand side, the country benefitted from a sharp rise in investments in machinery and equipment, which included products related to renewable energy," Statistics South Africa (Stats SA) said in a statement.

This highlights the point that it is not only power that is generated by solar panels. Demand for such products, as well as the installation and maintenance involved, also generates economic...