August 30, 2024
Economic Growth: What can we expect?
The South African economy has faced significant challenges over the past few years, hindering substantial growth. Key issues include electricity supply constraints, high interest rates, reduced demand, escalating inflation, and policy uncertainty from the government. In the first quarter of 2024, the economy recorded a contraction of 0.1%, with only the agricultural sector showing notable growth at 13.5%; most other sectors either contracted or experienced minimal growth.
Looking ahead, there is hope for improved performance in the second quarter. The easing of electricity supply issues, along with a cautious increase in overall confidence within the economy, may benefit growth. This improved stability could positively impact the manufacturing and mining sectors, potentially leading to favorable growth in the second quarter of 2024.