South Africa Economy Shrinks as Outages, Logistics Take Toll
(Bloomberg) -- South Africa’s economy shrank in the third quarter as logistics constraints and a chronic electricity shortage took their toll.
Gross domestic product contracted 0.7% year-on-year in the three months through September, compared with growth of 1.5% in the prior quarter, Statistics South Africa said in a report released in the capital, Pretoria, on Tuesday. The median estimate of 11 economists in a Bloomberg survey was for output to shrink 0.1% in the period.
The slump follows a 2.2% annual contraction in mining and a 3.2% slowdown in utilities over the three-month period. Agriculture shrank 19.9% from a year earlier, while construction contracted 2%.
![](https://assets.bwbx.io/images/users/iqjWHBFdfxIU/ifownPplIGQk/v2/-1x-1.png)
Household spending, which has come under pressure from high living and borrowing costs, shrank 0.3% in the quarter. The central bank has increased its benchmark rates by 475 basis points since November 2021 to a 14-year high of 8.25%.
The fall in household expenditure also comes amid pressure on money supply and credit extension, with the amount of money flowing into the economy and loans extended to consumers and private businesses posting their weakest growth in almost two years in October, according to central bank released last week.
In its latest Financial Stability Review, the bank also flagged stresses on lenders, which it said are beginning to take strain from the high interest rate environment, spurring more careful lending approaches.
For the nine months through September, GDP grew 0.3% compared with the previous year, an early indication that growth may underperform the 0.8% forecasts for the year from the National Treasury and the central bank. On a quarter-on-quarter basis, the economy contracted 0.2%, compared with analyst expectations for an unchanged print.
(Updates with additional data from third paragraph)
©2023 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More utilities news
![BloomburgMedia_SGDGRGT1UM0W00_03-09-2024_13-34-00_638609184000000000.jpg](/media/ul0imebb/bloomburgmedia_sgdgrgt1um0w00_03-09-2024_13-34-00_638609184000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133698440403530000&format=webp)
Restart Closed US Nuclear Plants? Only a Few Would Work
![BloomburgMedia_SJ68LKT0G1KW00_02-09-2024_11-00-07_638608320000000000.png](/media/wsyll1eq/bloomburgmedia_sj68lkt0g1kw00_02-09-2024_11-00-07_638608320000000000.png?anchor=center&mode=crop&width=240&height=135&rnd=133697484076370000&format=webp)
Turkey, Shell Sign LNG Supply Deal in Boost to Gas Hub Plan
![BloomburgMedia_SIZ05MT0AFB500_02-09-2024_06-12-23_638608320000000000.jpg](/media/f00fbygw/bloomburgmedia_siz05mt0afb500_02-09-2024_06-12-23_638608320000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133697311440000000&format=webp)
Tianqi Lithium Swings to Loss on Battery Metal’s Price Plunge
![Borouge Petrochemical Complex Al Ruwais Industrial City](/media/ddmdiuvu/borouge-petrochemical-complex-al-ruwais-industrial-city.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133697329642770000&format=webp)
Borouge shareholders approve $650 million interim dividend after exceptional H1 earnings
![DLS 4200 NMDC](/media/djsg2vpl/dls-4200-nmdc.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133697388402070000&format=webp)
NMDC Group’s IPO of NMDC Energy 7x oversubscribed by day 2
![BloomburgMedia_SJ1D32DWX2PS00_02-09-2024_06-12-41_638608320000000000.jpg](/media/gnsaitim/bloomburgmedia_sj1d32dwx2ps00_02-09-2024_06-12-41_638608320000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133697311614630000&format=webp)
GE Vernova Blade Failure at UK Site Tied to High Winds
![BloomburgMedia_SIZZDRDWRGG000_02-09-2024_06-12-57_638608320000000000.jpg](/media/ncsly1ms/bloomburgmedia_sizzdrdwrgg000_02-09-2024_06-12-57_638608320000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133697311772930000&format=webp)
Data Centers Face Seven-Year Wait for Dominion Power Hookups
![BloomburgMedia_SIXCK4T0G1KX00_29-08-2024_12-00-08_638604864000000000.png](/media/nnrgrzcx/bloomburgmedia_sixck4t0g1kx00_29-08-2024_12-00-08_638604864000000000.png?anchor=center&mode=crop&width=240&height=135&rnd=133694064080370000&format=webp)
European Car Sales Stagnate as EV Demand Plummets in Germany
![Noatum Terminal Malaga 2](/media/ncnhesa5/noatum-terminal-malaga-2.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133693946193870000&format=webp)
Noatum acquisition propels AD Ports Group into global top 20 of container port operators in new industry ranking
![BloomburgMedia_SIVRZ7T1UM0W00_28-08-2024_12-27-37_638604000000000000.jpg](/media/qxlh5pqm/bloomburgmedia_sivrz7t1um0w00_28-08-2024_12-27-37_638604000000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133693216575770000&format=webp)
Korean Nuclear Firm Says It’s Closing In on More Reactor Deals
![Thumbnail (1)](/media/avnnkwbu/thumbnail.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133651637018400000&format=webp)
Why data centres and AI could shake up the global LNG market
![Thumbnail](/media/kfob3oys/thumbnail.png?anchor=center&mode=crop&width=540&height=300&rnd=133600616585730000&format=webp)
Why energy executives expect the world to hit net zero by 2060
![CSIS Thumbnail](/media/o0acqjyg/csis_thumbnail.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133566075809700000&format=webp)
CSIS: long-term LNG demand to reshape global export capacity growth
![Dr Carole Nakhle Thumbnail](/media/gqrpjths/dr-carole-nakhle_thumbnail.png?anchor=center&mode=crop&width=540&height=300&rnd=133542056370600000&format=webp)
More women in energy vital to the industry’s success
![Vandana Hari Thumbnail](/media/gz3dyktl/vandana-hari-thumbnail.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133511540022930000&format=webp)
India’s energy sector presents lucrative opportunities for global companies
Partner content
![Dewatermark.Ai 1723035294692](/media/0pujudcn/dewatermark-ai_1723035294692.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133675125990530000&format=webp)
Integrally geared compressors cut the carbon and boost carbon capture
![Navigating the trading seas: exploring the significance of benchmarks-1859882229](/media/qlacaiww/navigating-the-trading-seas-exploring-the-significance-of-benchmarks-1859882229.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133613577584600000&format=webp)
Navigating the trading seas: exploring the significance of benchmarks
![New Lng Ship Web 17829](/media/vjrjyypa/new-lng-ship-web-17829.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133179936218300000&format=webp)
Back to the Future(s): the best commodities benchmarks are still physically settled
![Dr Klaus](/media/4eyh2dr0/dr-klaus.jpg?center=0.3953747239980292,0.50683017007953435&mode=crop&width=540&height=300&rnd=133517897092430000&format=webp)
Ebara Elliott Energy offers a range of products for a sustainable energy economy
![ESSAR](/media/5uafghtj/essar.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133524466961070000&format=webp)