World

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

Ray Charles Marfo

Digital Marketing and Brands Expert

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