South Africa: Study shows consequences of SA water crisis

A Uasa economic impact study on the impact of South Africa's water crisis released on Monday predicted a possible decrease in disposable income, a hike in government spending, and thousands of job losses. The study was commissioned by the trade union Uasa to establish the real impact of the South African water crisis on the country. Macroeconomic effects of decreased water quality include a rise in the ratio of government debt to Gross Domestic Product (GDP) of 28 per cent, a drop of R16-billion in household spending, a drop of 1 per cent in the GDP growth rate as well as a drop of R9-billion (2,5 per cent) in total fixed investment.