KZN floods, power cuts weigh economy down

South Africa’s economy shrank by 0.7% in the three months to June of 2022, compared with market forecasts of a 0.8% fall, as devastating floods in Kwazulu-natal and intense power rationing weighed on a number of industries.

Seven out of 10 activities contracted, with manufacturing hit the most. Other sharp declines were seen in agriculture, mining & quarrying and trade, catering and accommodation. On the expenditure side, household consumption and fixed investment slowed, while government spending fell.