Nothing good to expect from Q2 economic data


On Tuesday, Stats SA released GDP data for the first three months of the year, showing a 1.9% increase and the economy returning to pre-COVID-19 pandemic times.

JOHANNESBURG — Economists said while the increase in gross domestic product recorded in the first quarter of the year was encouraging, the reality was that second quarter data was likely to be dismal.

On Tuesday, Stats SA released GDP data for the first three months of the year, showing a 1.9% increase and the economy returning to pre-COVID-19 pandemic times.

However, there have since been many local and international negative factors that have affected sectors of the economy.

The GDP release from Stats SA reflected the non-inclusion of data since the April floods in KwaZulu-Natal and other parts of the country, which saw the government declare a national state of disaster as key infrastructure, including including transport, have been affected.

Economists said there was nothing good to expect from the second quarter data, although the first three months of the year brought the economy back to pre-pandemic levels.

Citibank Economist Gina Schoeman: “There are always risks and unfortunately as we look to the future there are floods, load shedding, global inflation and rising local inflation, which could unfortunately taking away some of that shine.”

Don Consulting Group’s chief economist, Chifipa Mhango, said that although he does not have control over many areas that could influence a possible negative result in the second quarter, the country could change course.

“Where we have problems with energy supply, I think that’s an area we can control. The areas where we have challenges, of course, that’s also the area where we can control any other problems. , it’s about devoting the right resources in terms of cushioning the effects,” Mhango said.

Manufacturing, trade and finance were among the sectors that contributed to the positive growth in the first quarter.

Previous South Korean stocks end flat as investors await China and US economic data
Next Carbon market: How India can benefit from voluntary carbon markets