DURBAN - The South African economy did not grow in the first quarter of this year, according to NKC African Economics senior economist Elize Kruger.
“My gross domestic product growth forecast for the first quarter of 2018 on a quarter-on-quarter seasonally adjusted annual growth rate is zero, compared to 3.1percent in the fourth quarter of 2017. This suggests that the economy did not grow, if compared to the fourth quarter of 2017, or stated otherwise that the economy has lost momentum if compared to quarter four. Quarter four of 2017 was indeed actually quite a strong quarter,” said Kruger.
Compared to the first quarter of last year, Kruger forecast a year-on-year growth rate of 2.1%.
She said that there was a high probability that the quarter-on-quarter seasonally adjusted annual growth rate could be negative for the first quarter, contrary to her forecast of zero percent “which would be particularly disappointing in the light of improved confidence in the economy.”