South Africa economy shrinks in second quarter

Pretoria, Sept. 7, (dpa-AFX/GNA) - South Africa’s economy contracted in the second quarter after the devastating floods in KwaZulu-Natal and load shedding weighed mostly on manufacturing, Statistics South Africa reported Tuesday. 

After two consecutive quarters of positive growth, real gross domestic product decreased 0.7%in the second quarter. 

Economists had forecast an annualized fall of 0.8%, following the first quarter’s 1.7% growth. 

The decline in the second quarter dragged GDP back below the 2019 pre-pandemic level. 

On a yearly basis, GDP growth eased sharply to 0.2% from 2.7%. This was also weaker than economists’ forecast of 0.6%. 

Seven industries recorded negative growth in the second quarter. The flooding had a negative impact on a number of industries, most notably manufacturing. 

The manufacturing industry decreased 5.9%. Farm output was down 7.7% and mining and quarrying output slid 3.5%. 

The trade, catering and accommodation industry fell 1.5%.