Load shedding yet another challenge for SA’s weak growth, say analysts
Load shedding may have a negative impact on the year’s economic growth, analysts have warned.
Statistics South Africa on Tuesday released third-quarter GDP figures, which reflects growth of 2.2%. This effectively means the economy has exited the technical recession.
Analysts have welcomed the rebound but have warned that the year’s growth will still remain weak. Fourth quarter GDP particularly will be impacted by load shedding, which has recently been implemented by power utility Eskom.
“The short-term impetus we are currently seeing is encouraging, but may be negatively impacted by Eskom’s power generation capacity affecting economic output,” Reza Hendrickse, portfolio manager at PPS Investments, said in a statement.
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