Continuing with our sectoral view of the economy, we have also seen ongoing volatility in output in mining, construction, and manufacturing, reflecting loadshedding, logistical bottlenecks and blockages, and other shocks. From a production point of view, South Africa has struggled to capitalise on sharply higher export commodity prices.
Unfortunately, the growth momentum from the first quarter is not expected to carry through to the second quarter. The flooding in KwaZulu-Natal in April heavily impeded economic activity and loadshedding has intensified. Additional headwinds to growth include a sharp correction in commodity prices, rising inflation and increased strike activity.