According to Statistics South Africa's latest quarterly GDP report, mining sector's wildcat strikes has left a deeper dent in the SA economy.
JOHANNESBURG(BullionStreet): Long strikes in mining sector hit South Africa's economy hard as the third quarter GDP grew only 1.2 percent as against an expected 3.4 percent.
According to Statistics South Africa’s latest quarterly GDP report, mining sector's wildcat strikes has left a deeper dent in the SA economy.
The slower pace was mainly owing to a sharp drop in mining production caused by the wildcat strikes in the platinum- and gold-mining industries.
The reduction in mining output dampened manufacturing growth, which increased by only 1.2%, while retail growth slowed to 1.7% as those participating in the strikes were not paid and, therefore, spending less.
Economic activity over other sectors was also slow in the quarter, caused by the transport strike and petrol shortages.
The next quarter is expected to show some improvement. The manufacturing sector was also weighed down by weaker global demands with an upside for retailers because of softer domestic spending.
In the first quarter, the sector grew by 7.7%, which contributed to over a third of the increase in GDP. GDP growth for the first quarter was 2.7% and a 3.4% growth in the second quarter.