Growth continues to be constrained by certain cyclical elements, such as weaker global trade and commodity price declines, as well as more idiosyncratic factors. Electricity shortages, although easing somewhat as more generating capacity has come online, continue to constrain production in some of the energy intensive sectors of the economy.
In addition, the recent drought, said to be the worst in decades, has had a severe negative impact on the agricultural sector, which may worsen in coming quarters. Indeed initial crop estimates indicate that South Africa will likely need to import a significant amount of grain this year.