SA’s economy grows 0.3% in Q3’24 y/y

South Africa's Gross Domestic Product (GDP) data for the third quarter showed a decrease of 0.3% quarter on quarter, marking a step backwards from the 0.4% increase in Q2. The market consensus suggests that South Africa's GDP growth remains sluggish, but there is potential for recovery. Maarten Ackerman, Chief Economist at Citadel, joined CNBC Africa's Power Lunch Southern Africa to discuss the local and global economic outlook for the year ahead. Ackerman expressed disappointment at the 0.3% decline in GDP, which was lower than the expected 1% increase. He highlighted the gap between positive sentiment and on-the-ground realities, emphasizing the need for substantial work to address the underlying issues hindering stronger economic growth. Looking ahead, Ackerman forecasted a modest 1% growth for 2024, underscoring the significant gap between population growth and economic performance. He suggested that it may take three to five years of addressing structural challenges before South Africa sees growth around 2.5%. However, Ackerman cautioned that global challenges, including potential trade tariffs under a Trump administration, could further strain South Africa's growth prospects. He noted the importance of the government's ongoing efforts to address structural issues and the positive impact that such reforms could have on the economy in the long run. Ackerman also discussed the potential impact of Trump's proposed tariffs on global trade, highlighting the need for countries to adapt to a changing trade landscape and seek strategic partnerships to remain competitive. Overall, Ackerman's outlook portrayed a challenging road ahead for South Africa's economy, with both local and global factors exerting pressure on growth prospects.