South Africa’s gross domestic product (GDP) decreased by 0.7% in the second quarter, taking the figure from 7.8% to 7.6%, Statistics SA said on Wednesday.
The agency said this was characterised by the devastating floods in KwaZulu-Natal in April and May and the ongoing loadshedding, weakening an already fragile national economy that had just recovered to pre-pandemic levels.
Statistician-general Risenga Maluleke said trade, catering and accommodation were negatively impacted by both the floods and rolling power cuts across the country.
“The industry recorded a contraction of 1.5% as floods damaged retail outlets and storage facilities. There was also a loss of trading hours due to loadshedding,” said Maluleke.
“Mining production was dragged lower by gold, coal and diamonds, with the decrease in coal production caused partly by the flooding. Mining output was also negatively affected by loadshedding.”
The agency added that during the period, agriculture, forestry and fishing activity dropped by 7.7%, pulled lower by a decrease in the production of animal products. Electricity outages and the spread of foot-and-mouth disease also contributed to the decline.
“The finance, real estate and business services industry made the biggest positive impact on GDP growth in the second quarter of 2022, rising by 2.4%. Growth was driven by increased activity in the banking sector, as well as in insurance and pension funding.”
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