First-quarter GDP stats offer welcome relief after months of gloom. But the party will be cut short when second-quarter data comes in.
The beleaguered construction sector contracted for a fourth successive quarter. Picture: 123RF/SONDEM
It also means that after two years, the economy is back to the size it was before the pandemic, having experienced a V-shaped recovery that was stronger and faster than initial expectations. Another bright spot is that household consumption increased 1.4% q/q, with the hospitality sector making a particularly strong showing as spending on restaurants and hotels surged and the Omicron wave faded.
Moreover, the data only covers January, February and March. So it fails to reflect the impact of the devastating floods in KwaZulu-Natal during April, or the full effects of the war in Ukraine, which has sent food and fuel prices soaring.