6 September 2022
After two consecutive quarters of positive growth, real gross domestic product (GDP) decreased by 0,7%1 in the second quarter of 2022 (Q2: 2022). The devastating floods in KwaZulu-Natal and load shedding contributed to the decline, weakening an already fragile national economy that had just recovered to pre-pandemic levels.
Manufacturing the biggest drag on GDP
The flooding had a negative impact on a number of industries, most notably manufacturing.
Manufacturing is the largest industry in KwaZulu-Natal, according to 2019 data, accounting for a fifth of national manufacturing production.2 The damage to factories and plants, and disruptions to logistics and supply chains, pulled national manufacturing output down by 5,9% (Figure 1). The biggest drags on growth were petroleum and chemical products, food and beverages, and transport equipment.