South Africa’s Gross Domestic Product (GDP) decreased by 0.3% in the third quarter of 2024. This is following an increase of 0.3% in the second quarter of 2024.
“The agriculture industry was the main drag on growth on the production (supply) side of the economy. With transport, trade and government services also contributing to the slowdown. On the expenditure (demand) side, there was a decline in imports, exports and government consumption,” Statistics South Africa (Stats SA) said on Tuesday.
The agriculture, forestry and fishing industry decreased by 28,8%. This contributed -0,7 of a percentage point to the negative GDP growth. And this was primarily due to decreased economic activities reported for field crops.
The transport, storage and communication industry decreased by 1,6%, contributing -0,1 of a percentage point. Decreased economic activities were reported for land transport and transport support services.
Trade, catering and accommodation industry
“The trade, catering and accommodation industry decreased by 0.4%. Decreased economic activities were reported for wholesale trade, motor trade and food and beverages.
General government services decreased by 0.1%. Mainly due to decreased employment in national and provincial government and extra-budgetary institutions.
“The finance, real estate and business services industry increased by 1.3% This contributed 0.3 of a percentage point. Increased economic activities were reported for financial intermediation, insurance and pension funding. Also auxiliary activities, real estate activities and other business services,” Stats SA said.
The personal services industry increased by 0.5%, contributing 0.1 of a percentage point. Increased economic activities were reported for health and education.
“The manufacturing industry increased by 0.5%, contributing 0.1 of a percentage point. Three of the 10 manufacturing divisions reported positive growth rates.
“The largest positive contribution was reported for the basic iron and steel. Also non-ferrous metal products, metal products and machinery division. The mining and quarrying industry increased by 1,2%. It contributed 0,1 of a percentage point. Increased economic activities were reported for manganese and chromium ore.”
Expenditure on GDP
Expenditure on real GDP decreased by 0.2% in the third quarter of 2024. This is following an increase of 0.4% in the second quarter of 2024.
“Household final consumption expenditure (HFCE) increased by 0.5%. It contributed 0.3 of a percentage point to the total negative growth. The highest growth rates were reported for non-durable and semidurable goods,” Stats SA said.
The main positive contributors to the increase in HFCE were expenditures on food and non-alcoholic beverages (0.9% and contributing 0.1 of a percentage point).
Housing, water, electricity, gas and other fuels (0.6% and contributing 0.1 of a percentage point). Recreation and culture (1.2% and contributing 0.1 of a percentage point). And restaurants and hotels (1.1% and contributing 0.1 of a percentage point).
“Final consumption expenditure by general government decreased by 0.5%. This contributed -0.1 of a percentage point. And this was mainly driven by decreases in purchases of goods and services and compensation of employees.
“Gross fixed capital formation increased by 0.3%. The main positive contributors to the increase were other assets (4.4% and contributing 0.5 of a percentage point). Construction works (1.4% and contributing 0.2 of a percentage point). Machinery and other equipment (0.5% and contributing 0.2 of a percentage point),” Stats SA said.
Large decrease in key industries
There was a R6,6-billion drawdown of inventories (seasonally adjusted and annualised value). There were large decreases in key industries, namely manufacturing; electricity, gas and water. As well as mining and quarrying, all contributed to the inventory drawdown.
“Net exports contributed positively to expenditure on GDP. Exports of goods and services decreased by 3.7%. Largely influenced by decreased trade in pearls, precious and semi-precious stones and precious metals. Vehicles and transport equipment, excluding large aircraft. Chemical products; base metals and articles of base metals; and machinery and electrical equipment.
“Imports of goods and services decreased by 3.9%. Largely influenced by decreased trade in vehicles and transport equipment excluding large aircraft. Also mineral products; vegetable products; and base metals and articles of base metals.”
- SAnews.gov.za
