South Africa hits economic setback
Floods in South Africa’s KwaZulu-Natal province, rolling blackouts and the global economic slowdown are the major contributors to South Africa’s economy shrinking by 0.7% in the second quarter of 2022.
The April floods which killed more than 400 people contributed to a near-6% decline in manufacturing output.
The destruction of roads and key infrastructure in KwaZulu-Nata accounts for the decline in the key manufacturing sector.
On top of this, both the agricultural and mining sectors also shrank.
Last year the economy grew by 4.9% as rebounded from the impact of the pandemic and the measures to deal with it.
Lockdowns in 2020 saw GDP decline by an unprecedented 6.4%.
Following months of positive growth, the 0.7 % decline announced on Tuesday has pushed the country back below to pre-pandemic levels.
source: bbc
