• Busting Uber myths

    The ehailing firm is constantly trying, succeeding - and sometimes failing, says Ian Mann.

  • Trapped in a democracy

    The very people elected to bring benefits to all are undermining SA, says Solly Moeng.

  • Marikana spectre

    Five years after the bloody massacre calls for justice are growing louder, says Terry Bell.


Economic growth seen slowing to 1.5%

Nov 23 2012 16:02
Johannesburg - The pace of economic growth in South Africa probably halved in the third quarter, according to a Reuters poll, after wildcat mining strikes turned into the deadliest labour unrest since the end of apartheid in 1994.

Fifteen economists forecast growth in the quarter to have braked sharply, with the median forecast estimating that gross domestic product (GDP) grew 1.5% compared with 3.2% in the previous three months.

Recession in the euro zone also hurt demand for South African goods.

On a year-on-year basis, growth is expected to have slowed to 2.6% from 3% in the second quarter.

"The slowdown has largely been a result of the mining sector strikes, which have caused output levels in the sector to plummet," said Shilan Shah of Capital Economics.

Mining accounts for 4% to 6% of gross domestic product. Repeated disputes and stoppages over low wages in the sector reflect widespread anger over enduring inequalities in Africa's biggest economy.

More than 50 people have been killed in the unrest.

The last of a wave of illegal strikes that swept gold and platinum mines ended a week ago after workers accepted an offer from Anglo American Platinum.

But tension still persists at some mine shafts between rival unions, and two people were killed on Thursday in a clash between feuding union members at a gold mine west of Johannesburg.

"Meanwhile, the performance in other sectors has been weak.

Manufacturing PMI readings have slowed for three consecutive months, as a result of weak demand from the euro zone," Shah added.

Manufacturing contributes about 15% to South Africa's gross domestic product.

Statistics South Africa is due to release economic growth data for the third quarter on Tuesday, while releases of credit, money supply and producer price inflation for October are due on Thursday and trade data on Friday.
south africa  |  economic growth  |  labour unrest



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're Talking About...

Savings Month

It's never too late to start saving. Visit our special issue and add your voice.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The proposal to nationalise SARB will

Previous results · Suggest a vote