Macroeconomic Trends in South Africa REPORT December 2023

In a year of intense electricity rationing (loadshedding) and inflationary pressures, South Africa’s economy contracted in the third quarter of 2023, after two consecutive quarters of expansion. It is anticipated that if power cuts ease in 2024, economic growth stands to improve. Projected growth rates by the South African Reserve Bank (SARB) of 1.2 and 1.3 per cent in the next two years and of 1.4 per cent on average over the next three years forecast by the National Treasury, are still too low.