Reflections on loadshedding and potential GDP

Theo Janse van Rensburg and Kgotso Morema

No 11048, Occasional Bulletin of Economic Notes from South African Reserve Bank

Abstract: This economic note investigates the slowdown in South African growth since the global financial crisis. It finds that domestic growth (both actual and potential) has been on a declining trend largely due to structural constraints, which over the last two years have been exacerbated by load-shedding. SARB models estimate the impact of load-shedding at between -0.7 and -3.2 percentage points, while other institutions' estimated impacts range between -0.4 and -4.2 percentage points. In our view, load-shedding will likely continue for longer as Eskom embarks on major repairs, new capital investment and maintenance projects. To prevent further growth slippage, it is crucial that there is efficient implementation of energy reforms as well as private sector participation and investment.

Date: 2023-06-29
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.resbank.co.za/content/dam/sarb/publica ... al-gdp-june-2023.pdf Revision (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rbz:oboens:11048

Access Statistics for this paper

More papers in Occasional Bulletin of Economic Notes from South African Reserve Bank Contact information at EDIRC.
Bibliographic data for series maintained by Jessica VanWyk ().