Johannesburg – South Africa’s moribund economy performed better than expected in the first three months of the year with finance, mining, and trade making the most significant contributions.
According to data from Statistics South Africa, the gross domestic product (GDP) grew by 1,1% in the first quarter of the year (January–March), translating into an annualised growth rate of 4,6%.
The first-quarter GDP data beat market expectations of a 2.5% rise.
The increase in economic activity was led by eight out of ten industries reported positive growth rates in the first quarter, with finance, mining boosted by platinum group metals, iron ore, gold, and chromium, and trade paying a decisive role.
“The COVID-19 pandemic and subsequent lockdown restrictions caused significant disruptions to the South African economy. Real GDP was R782 billion in the first quarter of 2020. In the second quarter of 2020 (April–June), when lockdown restrictions were at their most stringent, economic output slumped to R652 billion,” the stats agency said in a statement.
“Economic activity has increased since then, in line with easing lockdown restrictions, with real GDP rising to R761 billion in the first quarter of 2021. This level is roughly comparable to what the economy was producing in the first quarter of 2016, and is 2,7% down from the R782 billion recorded in the first quarter of 2020.”
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