ECSECC has published its Eastern Cape Economic Review report for the Fourth Quarter of 2022. It presents the economic overview of the province. The report shows that the
global economy is projected to grow by 2.9% in 2023, while South Africa’s
economy is expected to grow by 1.2% in 2023. In 2022Q4, South African economy shrank by 1,3%. The GDP fell
below pre-pandemic levels.
The energy crisis, rising cost of living, load-shedding, fiscal austerity, and climate change had adverse effects on the economic
activities in the province. They depressed business investment and
labour market prospects, eroded real wages, and pushed the economy more into
informal sector. These economic shocks are presenting a high risk for the Eastern Cape economy. Should the negative growth persist in the next quarter,
the country and the province will be in recession.
In 2022Q4, the Eastern Cape economy declined by 1.3%. Agriculture,
finance, trade, manufacturing, energy, and government were the main sectors
that dragged the provincial economy down.
However, while the economy underperformed in 2022Q4, about 20 000 jobs were
gained in the province and unemployment rate declined by 0.3 of a percentage
point to 42.1% in 2022Q4.