South Africa's economy contracted in the second quarter after the devastating floods in KwaZulu-Natal and load shedding weighed mostly on manufacturing, Statistics South Africa reported Tuesday.
After two consecutive quarters of positive growth, real gross domestic product decreased 0.7 percent in the second quarter. Economists had forecast an annualized fall of 0.8 percent, following the first quarter's 1.7 percent growth.
The decline in the second quarter dragged GDP back below the 2019 pre-pandemic level.
On a yearly basis, GDP growth eased sharply to 0.2 percent from 2.7 percent. This was also weaker than economists' forecast of 0.6 percent.
Seven industries recorded negative growth in the second quarter. The flooding had a negative impact on a number of industries, most notably manufacturing. The manufacturing industry decreased 5.9 percent.
Farm output was down 7.7 percent and mining and quarrying output slid 3.5 percent. The trade, catering and accommodation industry fell 1.5 percent.
