South Africa is facing a deepening economic crisis as the unemployment rate rose to 33.5% in the second quarter of 2024, just two percentage points away from the all-time high set in late 2021. Despite Eskom managing to avoid widespread blackouts, the economy saw minimal growth, with key sectors like trade and agriculture shedding jobs.
The provincial unemployment rates varied significantly, with the Western Cape at 22.2% and the North West at a staggering 41.3%. This disparity highlights the uneven economic challenges across the country.
The lack of economic growth combined with political uncertainty from recent elections has further dampened the economic outlook. The mining sector, vital to South Africa’s GDP, experienced a decline in production, potentially preventing a recession.
Experts are cautiously optimistic for the second half of 2024, citing the stable performance of Eskom and potential interest rate cuts. However, the rising unemployment rate remains a cause for concern, signaling a challenging road ahead for the economy.