SA economy shrinks by 0.7%
South Africa's economy shrunk by 0.7 percent in the second quarter of the year.
The contraction follows two consecutive quarters of positive gross domestic product (GDP) 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.
READ: Dube-Ncube wants to meet with AG following damning flood report
Maluleke says manufacturing is the largest industry in KZN and contributes a fifth to the national manufacturing production output.
"The flooding had a negative impact on a number of industries, most notably manufacturing,"
"Manufacturing is the largest industry in KwaZulu-Natal, according to 2019 data, accounting for a fifth of national manufacturing production. The damage to factories and plants, and disruptions to logistics and supply chains, pulled national manufacturing output down by 5,9%.
"The biggest drags on growth were petroleum and chemical products, food and beverages, and transport equipment."
MORE ON ECR
