South Africa riots will push economy into 3% contraction in Q3 -JPMorgan
LONDON, July 16 (Reuters) – The unrest that has ripped through South Africa in the past week will force its economy to contract by 3% in the third quarter and drag down full-year growth, Wall Street bank JPMorgan said on Friday.
Rioting broke out in several parts of the country, which has Africa’s most industrialised economy, following the jailing of former President Jacob Zuma last week for his failure to appear at a corruption inquiry. The week of looting has destroyed hundreds of businesses and killed more than 100 people. read more
The flare-up prompted JPMorgan to revise Q3 growth quarter-on-quarter projections sharply lower from a previous estimate of -0.5%.
“The wave of violence and looting…