Disappointing GDP a dose of reality
‘Ramaphoria’ may have buoyed moods in SA, but new data shows it hasn’t translated into economic growth
The shocking 2.2% contraction in real GDP growth in the first quarter suggests that more will have to be done to turn the positive sentiment engendered by President Cyril Ramaphosa’s election into economic activity.The Bloomberg consensus was for first-quarter growth to slow by 0.5%, with forecasts ranging between -2% and 2%. The 2.2% fall, the largest quarterly decline since the global financial crisis, will likely cause some downward revision to full-year growth forecasts.Strong base effects meant the first-quarter figure was never going to be robust. However, growth slowed in nearly every subsector, with only less weak activity occurring in the services sector thanks mainly to increased public sector employment."We view the poor first-quarter GDP performance as an unhelpful bump in what is still likely to be a slowly improving road for the SA economy," says BNP Paribas economist Jeffrey Schultz.The fact that the slowdown was broad based "clearly highlights that the economy is no...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.