The Jakarta Post - 2 September 2023 by Muhammed Patel (TIPS)
Read online at The Jakarta Post
Main Bulletin: The Real Economy Bulletin - Second Quarter 2023
In this edition
GDP growth: The GDP grew 0.6% in the second quarter of 2023, a slight improvement over the previous quarter and maintaining the return to pre-pandemic levels after the extraordinary drop in the second quarter of 2020. Growth was driven by a 5% increase in investment by private business and state-owned companies, likely reflecting the rapid expansion in off-grid, largely renewable generation. Read more.
Employment: Employment climbed rapidly from the second quarter of 2022 to the second quarter 2023, adding 780 000 positions. Almost all of the net job gains were in the formal sector, with the strongest showing for retail, sales and elementary positions. Manufacturing kept pace with overall jobs growth, but the picture was mixed at industry level. Metals, clothing and auto saw gains while net job losses emerged in chemicals and machinery and food processing remained flat. Read more.
International trade: A trade surplus of R10 billion was recorded In the second quarter of 2023, up from a deficit of R5.1 billion in the first quarter. Mining exports fell by 20% in the year to the second quarter of 2023, driven by a drop in coal prices at the end of 2022. In contrast, agriculture and manufacturing exports continued to climb, increasing by 11% and 7% respectively. Read more.
Investment and profitability: Investment rose to 15.5% of GDP from a low of 14% in mid-2021. Although this equalled the pre-pandemic investment rate, it remained below the level of 20% to 25% most economists consider necessary for rapid industrialisation. Profitability continues to fluctuate sharply. In construction, returns on capital shot up compared to the previous three years. In contrast, mining and manufacturing dropped off their peaks in the second quarter of 2021 and 2022. Read more.
Foreign direct investment projects: The TIPS Foreign Direct Investment Tracker monitors FDI projects quarterly, using published investment information. It captured a total of 30 projects in the second quarter of 2023, with an investment value of R259.71 billion recorded from 27 projects. Most of the projects added to the Tracker in the second quarter of 2023 were announced at the South African Investment Conference held in April of 2023. Only seven projects were not announced at the conference. At least half of the projects recorded are in the manufacturing industry, with others in mining services and utilities. Read more.
Briefing Note: Internal migration and industrial policy - by Neva Makgetla. The deadly fire in Marshalltown underscored the abject failure to accommodate the massive influx of new migrants into South Africa’s main urban hubs in ways that can promote both economic and social development. Everywhere, industrialisation builds up economic hubs while leaving much of the country behind. In South Africa, however, discriminatory citizenship policies under apartheid prevented the normal flow of people to the main urban areas. That has fuelled a much larger and enduring migratory wave since 1994. In response, industrial policy has tended to try to build up new industrial centres in remote rural areas, rather than focusing on integrating newcomers into more efficient and dynamic urban agglomerations. Read the Briefing Note online: Internal migration and industrial policy.South Africa’s merchandise exports declined by 0.8% year-on-year, amounting to R484 billion (constant rand terms) in the first quarter of 2023, while imports saw an increase of 15.1%. This resulted in a trade deficit (R1.2 billion) which was last experienced in the first quarter of 2019. The fall in exports in Q1 2023 was driven by the drop in commodity prices, particularly coal, which led to a decline in export revenues as coal is one of South Africa’s top export commodities. Since Q3 2021, South Africa’s imports have grown at a faster pace compared to exports, amounting to R485 billion in Q1 2023. The growth in imports has been primarily driven by increased demand for inputs to increase electricity generating capacity, with a rise in imports of products such as electrical transformers and electric batteries.
ESI Africa - 28 August 2030 by Nicolette Pombo-Van Zyl
Read online at ESI Africa
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CleanTechnica - 23August 2023 - by Remeredzai Joseph Kuhudzai
Business Day - 22 August 2023 by Neva Makgetla (TIPS Senior Economist)
Read online at Business Day