South Africa’s economy has posted positive GDP growth of 0.4% in Q1 and 0.6% in Q2, defying previous expectations of stagnation.
- Mining and manufacturing sectors have benefited from better electricity supply, contributing to the economic resilience.
- Despite the challenging macroeconomic environment, companies have performed well and made investments to enhance resilience.
- Private sector investment remains strong, driven by efforts to improve business resilience and alternative energy generation.
- The consumer sector is experiencing significant pressure amidst the positive economic outlook.
- Inconsistent electricity supply and logistical inefficiencies, including the collapse of Transnet, hinder the economy.
- Transnet’s collapse is expected to cost the country R1 billion a day in economic output, impacting finances and the current account balance.