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World Bank cuts SA’s GDP forecast due to load shedding

SABC News eskom power lines 1 1 - World Bank cuts SA’s GDP forecast due to load shedding

The World Bank has cut economic growth for South Africa to below 1% for 2020 due to electricity concerns.

The bank forecasts the country’s growth at 0.9% in its Global Economic Prospects report released on Wednesday.

The bank cited electricity supply and infrastructure constraints as impediments to domestic growth. The bank’s revision comes as Eskom resumes rolling blackouts earlier than expected.

Meanwhile, Eskom says load shedding will continue throughout the day until 6 am on Friday morning.

The embattled power utility had intended to end load shedding at 8 am this morning but had to continue with Stage 2 due to additional breakdowns at substations overnight.

Chief Economist at Efficient Group Dawie Roodt says, “Well I’m afraid I’m going to have to agree with the World Bank, their expectations of economic growth of less than 1% is in line with my own expectations and its quite likely that we’re going to see economic growth well below 1% for 2020, because of electricity but because of some other constraints as well that will lead to a further increase in unemployment and poverty in 2020…”

“I’m afraid 2021 is likely to see a similar kind of situation,” added Roodt.

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