BCL closure slows economic growth

Friday, July 07, 2017

Ripple effects: Electricty and coal production are some of the sectors affected by the BCL closure

The economy grew at a slower rate of 0.8% in the first three months of the year compared to 2.3% in the same period last year as the full effects of the closure of BCL in the fourth quarter of 2016 come into play.

Although the economy’s new driver, the services sector continued to perform well, it was the 28.9% decrease in the real mining value added that largely slowed economic growth.

BCL’s closure also affected coal production with Morupule Coal Mine (MCM) reducing output while the water and electricity sector also reduced output due to the closure of the copper and nickel mines.

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BCL closure slows economic growth

The economy grew at a slower rate of 0.8% in the first three months of the year compared to 2.3% in the same period last year as the full effects of the closure of BCL in the fourth quarter of 2016 come into play.