South Africa narrowly avoids technical recession in Q4

05 March 2024 - 12:34
By Kopano Gumbi and Sfundo Parakozov
The economy has stagnated over the past decade, with GDP averaging 0.8% since 2012.
Image: 123RF/XTOCK IMAGES The economy has stagnated over the past decade, with GDP averaging 0.8% since 2012.

South Africa's economy grew 0.1% in the fourth quarter of 2023 in quarter-on-quarter seasonally adjusted terms, narrowly avoiding a technical recession, statistics agency data showed on Tuesday.

In 2023, the economy grew 0.6%, Stats SA said.

The economy has stagnated over the past decade, with GDP averaging 0.8% since 2012.

Inefficiencies at state-owned power utility Eskom and port and freight rail company Transnet are one reason growth has been so weak.

A cost-of-living crisis that has squeezed consumer spending has also dented growth.

A technical recession is defined as two consecutive quarters of contracting economic output. The economy shrunk 0.2% in the third quarter of 2023.

Reuters