Load shedding could see SA head for recession, warns economist
Chief Economist at Econometrix Dr Azar Jammine has warned that any further increase in load shedding could see South Africa heading for a recession.
Jammine's comments come as the country's gross domestic product contracted in the fourth quarter of 2022.
Statistics released by Stats SA on Tuesday show that the country's economy has shrunk by 1.3% to pre-pandemic levels.
"Unfortunately with the first quarter of this year we have seen the intensification of load shedding if anything becoming even greater.
"So we are likely to see further declines in economic activity for Q1:2023. And I'm afraid when we move into the Q2 and Q3 it could even get worse because when you get to the winter season the demand for electricity increases to supply heating which would exacerbate the shortage of power which can see us move to stage 8 load shedding which would have more implications for economic growth. If the economy contracts in Q1 which seems likely this would mean we are in a recession right now."
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