🗣 'The devastating floods in KwaZulu-Natal and load shedding contributed to the decline, weakening an already fragile national economy that had just recovered to pre-pandemic levels.' - Risenga Maluleke SouthAfrica Economics
The contraction follows two consecutive quarters of positive gross domestic product growth.
Statistician-general Risenga Maluleke says the April floods in KwaZulu-Natal and load shedding contributed to the decline. "The devastating floods in KwaZulu-Natal and load shedding contributed to the decline, weakening an already fragile national economy that had just recovered to pre-pandemic levels."
The agency says the disaster impacted negatively on several industries, particularly manufacturing, as factories suffered damage and supply chains were disrupted.Maluleke says manufacturing is the largest industry in KZN and contributes a fifth to the national manufacturing production output."Manufacturing is the largest industry in KwaZulu-Natal, according to 2019 data, accounting for a fifth of national manufacturing production.
"The biggest drags on growth were petroleum and chemical products, food and beverages, and transport equipment."
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