'Muted' South African economy skirts recession as election looms
By AFP |
The economy has been slumbering for several years, battered by a prolonged energy crisis resulting in daily power blackouts.
The South African economy grew 0.1 per cent in the fourth quarter of 2023, narrowly avoiding a recession that could have hurt the ruling ANC ahead of May elections, official figures showed Tuesday.
The key mining industry recorded a 2.4 per cent increase in output helped by stronger production figures for platinum group metals, chromium ore, coal and diamonds, the national statistics agency StatsSA said.
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Alongside a 2.9 per cent expansion in the transport, storage and communication sector, this helped reverse the 0.2 per cent contraction the country recorded in the previous three months.
But StatsSA described economic growth as "muted" with the marginal 0.1 per cent increase taking the annual rate for 2023 to a meagre 0.6 per cent. In 2022 GDP had grown by 1.9 percent.
South Africans will head to the polls on May 29, amid high unemployment and widespread disillusionment with the ruling African National Congress (ANC), in power since 1994.
Agriculture, a backbone of South Africa's economy, shrunk for the first time since 2019, recording a 12.2 per cent drop in output last year.
"This is the biggest annual fall in agriculture production since 1995," StatsSA said.
The economy has been slumbering for several years, battered by a prolonged energy crisis resulting in daily power blackouts.
Troubles at state-owned rail and ports firm Transnet, hobbled by graft scandals, theft and maintenance issues, have further hampered economic activity.
Polls suggest the ANC could lose its parliamentary majority in May for the first time since the advent of democracy. That would force it to find a coalition partner to remain in power.
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