Economic Indicators
JP Morgan now expects S.Africa 2023 GDP decline on deeper power cuts
2023.05.12 04:14
© Reuters. FILE PHOTO: A local walks past electricity pylons during frequent power outages from South African utility Eskom, caused by its aging coal-fired plants, in Orlando, Soweto, South Africa, September 28, 2022. REUTERS/Siphiwe Sibeko
(Reuters) – JPMorgan (NYSE:) in a research note on Friday said it now forecast a 0.2% decline in South Africa’s 2023 gross domestic product versus a previous forecast for 0.3% growth, citing expectations for deeper power cuts.
The bank added that prolonged power cuts above the current record level referred to as “Stage 6” would worsen its current account projection beyond an already pessimistic 3% forecast for this year.
