SA economy: Battered and bruised, but not broken (Moneyweb)

South Africa needs to crowd in private sector expertise, capital, and risk appetite. According to Stats SA gross domestic product (GDP), the broadest measure of economic activity, declined by 1.3% from the third to the fourth quarter, adjusted for inflation and seasonality. This was much worse than expected and is a big number in absolute terms.

It does not take a trained economist to realise that load shedding carries much of the blame, with big declines in the energy-sensitive manufacturing, mining and agricultural sectors. Electricity production itself is a meaningful contributor to overall economic activity in its own right, responsible for R100 billion a year in real value added.

No surprise that it contracted 1.9% in the quarter. Click here to read full article