The African National Congress is starting its “dispute resolution process” in a bid to address the a.
GDP growth in South Africa is seen at a rate of -3,0 percent quarter-on-quarter, seasonally adjusted annualised in the second quarter from 6,4 percent in the first quarter, according to a consensus of nine leading economists by I-Net Bridge.
The third quarter GDP last year was the 40th consecutive quarter of positive growth since 1998, but this came tumbling down in the fourth quarter as the first decline in a decade was registered.
The range of forecasts for the current survey was from -1,3percent quarter -on-quarter to -4,8percent.
Stats South Africa will release the latest gross domestic product growth figures today.
One of the economists in the survey said that "quarterly pain should now be behind us with some small expansion in the retail sector".
He also feels that the construction sector should remain buoyant on the back of infrastructure build and World Cup-related activity.
"Government spending is also likely to continue strongly. Mining should also recover somewhat from the previous quarter, though it is still set to be down over 11percent year-on-year given low external demand.
"We see further recovery in mining through H2 given external demand from Asia in particular. Key areas of weakness are likely to be manufacturing down around 16percent year-on-year as well as utilities," he said.
Growth is expected to recover through the second half with a sharp build-up in inventories as corporates look through the bottom of the cycle to see better times ahead and build those stocks back up from such seriously depressed levels. - I-Net Bridge