Nedbank expects better grid performance will help stave off contraction
GDP is forecast to tick up but load-shedding and interest rates remain the biggest threats
Nedbank, one of SA’s four largest banks, expects the country’s economy to hold on to growth in the second quarter — albeit at very low levels — after Eskom’s better-than-expected grid performance in that period, which saw the power utility reduce the frequency and duration of power outages.
In a research report released on Wednesday, the bank said the improvement in Eskom’s energy availability factor to 60% in June from 53% earlier in the year — together with the recovery in domestic demand, supported by firmer consumer and government spending and continued growth in fixed investment — means the SA economy staved off a contraction and will possibly grow 0.3% in 2023...
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