Intellidex cuts South African growth forecast as load-shedding woes continue
Capital markets research firm Intellidex has cut its growth forecast for South Africa’s economy for this year further to 1%, from the previous estimate of 1.2%.
In a statement on Friday, it highlighted a strong risk scenario of negative full-year growth, as a result of load-shedding.
It noted that load-shedding was unavoidable and that it was uncertain how long it would continue for but that it was likely to continue beyond the middle of the year.
Intellidex estimates that the economy has already, in the first quarter, lost about R27-billion as a result of load-shedding and that a further R60-billion is likely to be lost over the remainder of the year.
“For now we . . . highlight a strong risk scenario where growth this year could be -0.2% or even less.”
Intellidex expects this will do severe damage to foreign direct investment prospects for several years, while keeping domestic private sector investment, at best, on a much slower path to recovery.
“We project sluggish investment sentiment on the back of load-shedding to reduce 2020 [economic growth] from 1.7% to 1.5%,” the research firm added.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation