Johannesburg - Strikes, and water and electricity supply problems are undermining the economy, the BankservAfrica Economic Transaction Index (BETI) figures showed on Thursday.
“Quite frankly, the BETI indicates that the life is being sucked out of the economy at present,” economist Mike Schüssler said in a statement issued by BankserveAfrica.
The recent strikes in the motor industry had led to a production loss of over 50,000 vehicles and the trade balance declined by R12
Schüssler said he did not see the situation changing in the coming weeks.
“With much of the strike action still taking place, the chances for a recovery are probably slim for both October and probably even November figures.”
It appeared the third quarter of 2013 would show much slower GDP growth than the second quarter.
“One downpour does not make a rainy season, but the strength of the downpour does indicate that, along with the continuation of strikes in mining and manufacturing, the growth in the economy is likely to remain subdued for October,” Schüssler said. - Sapa