This is the lowest growth since the third quarter of 2001, when the seasonally adjusted real GDP was 1.1%. Absa Capital economist Monale Ratsoma said the figure was worse than expected: "The reason for the lower figure is a decline in mining production which is reflective of power outages that escalated in January this year. Elsewhere, the finance sector is slowing down and that is a reflection of high interest rates and slowing consumer spending."
Not to worry...according to clever Trevor, SA's economy will continue to expand at 4% this year and next - irrespective of electricity outages and rising interest rates. Meanwhile, the SARB is sticking to its one dimensional brief to contain inflationary expectations with another rate hike expected soon, irrespective of its socio-economic impact and implications for employment creation. No wonder the townships are starting to burn - watch this space for much more to come. In the meanwhile, we are quietly creating our own subprime dilemma given the indebted state of the average SA consumer - but please tell no one....on the other hand, banking shares might be starting to discount this eventuality?
Topgun. I have some solutions. Firstly . Vat should be reduced during time of high energy cost.(tiered approach) Secondly. The entire board of Eskom should be fired. Govt should issue preference shares to finance Eskom Capital expenditure. Preference share should provide higher yield. Thirdly. The department of Home Affair and Border control should be subjected to Strict "Scorpion" investigation. Fourthly ..Death penalty should be brought back with immediate effects. Lastly the President must realise that he is in power , irrespective of so call JAcob Zuma and he must fierce in combating crime. shhhh..i am overthinking now, back to being a clown.