Despite ongoing challenges, GDP growth in the first half of 2023 surpassed expectations. The mining, manufacturing, and finance sectors performed better than anticipated. On the demand side, government expenditure and private sector gross fixed capital formation also showed stronger growth than expected.
Several factors contributed to these outcomes. Companies adapted to load-shedding, Eskom reduced planned maintenance to boost generation capacity, and there was increased reliance on Open Cycle Gas Turbines. Additionally, self-generating rooftop solar power and wind energy saw increases. This occurred alongside resilient growth from trading partners.
Looking forward into 2024, the GDP growth outlook remains weak; however, risks to this outlook are balanced.