SA riots could hit GDP growth, says Treasury

South Africa’s National Treasury said on Tuesday that economic damage from riots last month could shave off between 0.7 and 0.9 of a percentage point from this year’s economic growth.

“We are concerned about the potential scarring effect on employment and sentiment that may outlive the shock and impact potential growth,” the National Treasury said in a presentation to a parliamentary committee.

The July unrest started as sporadic protests over the jailing of former president Jacob Zuma, but it quickly escalated into arson and looting fuelled by the poverty and inequality that persist almost three decades after the end of apartheid.