With no end in sight and the continuation of unprotected strikes spreading across South Africa, the effect on domestic growth for the third quarter will be adverse and also affect the output in 2013.
Gross domestic product rose by an annualised rate of 2.7% during the third quarter and 3.2% in the second. But, depending on the duration and spread of the strikes, economists predict it could slow down to anywhere between 2% and 2.5%. Unrest in the mining sector affected growth in the previous two quarters which caused fluctuations.

An illegal strike at Impala Platinum during the first quarter caused growth in the sector to drop to minus 16.8%. Its recovery in the second quarter saw it bounce back to 31.2%, significantly boosting GDP.

It is almost certain that the ongoing strikes will have an even worse effect on GDP going forward. Two weeks ago, South African Reserve Bank governor Gill Marcus said the bank’s forecast had been revised down to 2.6% in 2012 and 3.4% in 2013, compared with previous forecasts of 2.7% and 3.8%.