DStv Channel 403 Friday, 01 November 2024

SA's economic trouble | Sustainability of GDP growth questioned

 

JOHANNESBURG - The latest GDP figures have exceeded expectations.

It grew by 0.6 percent in the second quarter.

It was driven by growth in manufacturing, mining, and agriculture.

WATCH | SA economy up by 0.6% in Q2 of 2023

Economist Lumkile Mondi warns this may not be sustainable.

He said, "there was a huge demand in the manufacturing sector specifically the metal product, machinery and equipment which are very critical for our economy given that sector has linkages to mining and hence mining is also performing very well."

"Of course our exports that’s linked to the automotive sector as you know we export quite a lot to international markets so those were very important for us despite the energy crisis because manufacturing as we know is quite energy intensive. What was also important was the rebound of agriculture after two quarters of slow growth which really means that there is something in this economy."

"However, we are worried about the sustainability as we have heard from a number of CEO’s in the past few weeks as results were coming out specifically in the mining sector.”

Paid Content