Last month we said “whilst about 9% of South Africa’s total exports are destined for US consumers this translates to only around 2.7% of GDP. Most commentators might assess therefore that President Trump’s 30% tariffs will have a measure of impact, but nothing catastrophic. This might be true a year or two from now, but with economic activity already noticeably slowing and inflation set to rise, the timing for South Africa looks set to give it a bumpy 12 months until exports to other/ new markets can soak up the damage.” Well, the chickens are indeed coming home to roost.
Employment
In what some are calling “South Africa’s jobs bloodbath” Statistics South Africa’s Quarterly Labour Force Survey for Q1 (published 13th May) showed 291,000 South African jobs were lost in Q1, with 194,000 cut in trade, 119,000 in construction, and 35,000 in mining. A further 68,000 staff were cut from private households, 67,000 roles were cut in transport, 60,000 from Finance, and social services shed 45,00...
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