Real gross domestic product (measured by production) increased by 1,9%1 in the first quarter of 2022, following an increase of 1,4% in the fourth quarter of 2021.
*Above.2022 Q1 Macroeconomic/Total GDP growth indicator. ©statssa.gov.za
On the other hand, taking a dive into the growth rates of different microspheres of Q1 and their reported performance. Industries( Mining and Construction) of choice and affiliation have been under the weather of late. Due to the various pressures exerted ranging from national political unrest and uncertainties, natural disasters, international law, and financial watchdogs yanking on our judiciary, prosecution and financial crimes control measures.
More than five top government portfolios have been under scrutiny and making rounds amongst many news-related media houses, locally and internationally. Couple the unpleasant attention with the wondering cross heirs, looming majorly over the two primary sectors; mining and construction sectors.
*Above.2022 Q1 Macroeconomic/GDP growth indicators ©statssa.gov.za
*Below.2022 Q1 Microeconomic/Mining and quarrying growth indicators ©statssa.gov.za
Sector depreciation does not necessarily depict stagnation of the industry, but neither does the smoke spell an oasis from afar. Point in case,
Brief GDP Direct Impact Analysis Report
Political and Social unrest.
In a virtual meeting held on 15 September 2021, National Treasury briefed the Select Committee on the Second Special Appropriation Bill [B17-2021], to propose urgent funding allocation of
R32.85bn to the South African Special Risk Insurance Association (SASRIA) to meet the insurance claims caused by the unrest in Gauteng and KwaZulu Natal, the COVID-19 pandemic, Social Development, support of businesses and security forces. Based on a preliminary assessment undertaken by SASRIA on 14 July 2021, its current estimation of damages claims it will be liable for a range between R10bn and R20bn
A provision of R3.9bn additional contingency funding has been included in the Bill to provide for a required capital injection should SASRIA exceed its limits.
R21.3 million was allocated to the Southern African Development Community (SADC) Secretariat to enhance regional peace and stability, essential for regional trade and development.
R10.013bn Social Relief of Distress (SRD) R 350.00 grant for the months September 2021, October 2021, and November 2021. R16.687bn for the months December 2021 to March 2022.
R500 million for SASSA for system enhancements to improve application and payment processes including the strengthened eligibility assessment system.
R300 million and R2bn respectively to Department of Small Business Development (DSBD) and DTIC proposals to support businesses.
R1.3bn has been authorized by the Minister of Finance in terms of section 16 of PFMA for supporting businesses, and this will be a direct charge against the National Revenue Fund.
According to DTIC, the main places affected by the unrest were shopping malls which include some of the major retailers, fast food outlets, hair salons, surgeries, barber shops, small second-hand clothing shops, cell phone kiosks
Extensive damage to infrastructure includes 161 malls, 11 warehouses, 8 factories, 200 shopping centers (approximately 3 000 stores were looted), 11 liquor outlets and 113 communication infrastructure.
*Above.2021 Gauteng and Kwa-Zulu Natal Looting Image ©businesslive.co.za All these funds are used up from the country's various fiscal allowances and reserves. That simply means priorities are shifted around to either minimize, remove or transfer risk from one body to another. Pay-as-you-earn taxes, corporate income taxes, fuel levies, capital interest rates, foreign investors, and buyers' confidence are a few of the fiscal framework legs that will be heavily loaded and affect overall micro-economic growth.
International Financial Laws/ Observations.
