Real GDP for the first quarter of this year slowed down to 1.3 per cent compared to the 4.1 per cent (qqsa) recorded for the final quarter of 2014. This is against the backdrop of the sluggish growth rate of 1,5 per cent for 2014 and which is well below the Bank’s estimate of potential output of between 2,0 and 2,5 per cent.
The weak outcome last year was partly due to the impact of protracted strikes in the mining and manufacturing sectors during the year. The Bank estimates the negative impact of these strikes to be in the order of around 1,2 percentage points of GDP. Hopefully, prolonged work stoppages will not be a regular feature each year.