South Africa’s Economy: At The Mercy Of Power Sector

Must Read

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of First Bank of Nigeria Sort Codes in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...
- Advertisement -
Recently, the South African Statistical body – Statistics South Africa (Stats SA) – published the country’s GDP report for Q4-2019. According to the report, South Africa slipped into a technical recession during the quarter (second time in two years) as the seasonally adjusted and annualized real GDP contracted for the second successive quarter (Q4- 2019: -1.4% q/q and Q3-2019: -0.8% q/q). Also, the FY-2019 real GDP growth moderated from +0.8% y/y in FY-2018 to +0.2% y/y.
Notably, of the ten industries measured by Stat SA, only the Finance (+2.3% y/y), Government (+1.7% y/y) and Personal services (+1.0% y/ y) industry, grew during the year. Also, a deep look into the broad components of the economy showed that the Primary (-0.4%), Secondary (-2.9%) and Tertiary (-1.0%) components of the economy contracted during the quarter.
In our opinion, we believe that the contraction in Q4-2019 and slower growth in FY-2019 continue to reflect the negative impact of the country’s deteriorating power situation. Specifically, the inability of Eskom (South Africa’s state-owned power utility company) to meet the national electricity demand had impaired business and consumer confidence. Hence, we believe that for the economy to rebound in 2020, deliberate actions must be taken to improve the current situation of power in the country.
Pan African Monitor By United Capital Research
- Advertisement -
South Africa’s Economy: At The Mercy Of Power Sector - Brand SpurSouth Africa’s Economy: At The Mercy Of Power Sector - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

Read Also:  Standard Chartered hosts clients to Companies and Allied Matters Act and Finance Act 2020 roundtable discussion
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

South Africa’s Economy: At The Mercy Of Power Sector - Brand SpurSouth Africa’s Economy: At The Mercy Of Power Sector - Brand Spur

Latest News

For Richer, For Poorer: The Economic Impact Of Population Changes

Rapid population growth implies a swelling workforce: While this presents immense economic opportunities, it also comes with risks, particularly...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -South Africa’s Economy: At The Mercy Of Power Sector - Brand SpurSouth Africa’s Economy: At The Mercy Of Power Sector - Brand Spur