POLICY UNCERTAINTY
Fears over contraction of two key sectors
Economists warn uncertainty around policy, specifically regarding the mining charter, contributed to the declines
The mining and manufacturing sectors saw significant contraction in the last quarter of 2016 and there are fears the poor performance could continue into the first quarter of 2017. The two sectors are among the largest contributors to GDP and account for a large portion of the workforce. Their contraction will also drag GDP growth down. Mining production fell 4% in the fourth quarter of 2016. Economists said that uncertainty around policy, specifically regarding the mining charter, had contributed to the decline and to an environment of restrained investment. Manufacturing production shrank 1.1% in the last quarter of 2016, overshooting predictions of a decline. Econometrix director Azar Jammine said on Thursday that both results were disappointing and would negatively affect the first quarter.
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