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The South African economy experienced a marginal quarter-on-quarter expansion of 0,1% in the fourth quarter of 2023 (2023 Q4) following an unexpected contraction of 0,2% in the third quarter (2023 Q3). This growth helped the economy avoid slipping into a technical recession, although it is lower than analysts’ expectations. Despite facing significant challenges, such as severe power outages, weaker terms of trade, local infrastructure constraints, muted global demand, lower commodity prices, and persistent domestic structural constraints, the economy demonstrated relative resilience, achieving a growth rate of 0,6% for 2023.
Economic growth reduced across four out of 10 sectors in 2023 Q4, with the agriculture, forestry and fisheries sectors experiencing the most significant decline at 9,7% quarter-on-quarter (seasonally adjusted and annualised), and contributing -0,2 percentage points to GDP growth. The…