SOUTH AFRICA’S ECONOMY GROWS BY 0.4%

Wed 04 September 2024:

South Africa’s Growth Domestic Product (GDP) grew by 0.4% in the second quarter of 2024 with finance, real estate and the business services industry contributing most to the growth.

This is according to Statistics South Africa (Stats SA) which released the GDP results on Tuesday.

“The finance, real estate and business services industry increased by 1.3%, contributing 0.3 of a percentage point to the GDP growth. Increased economic activities were reported for financial intermediation, auxiliary activities, real estate activities and other business services.

“The trade, catering and accommodation industry increased by 1.2%, contributing 0.1 of a percentage point. Increased economic activities were reported for wholesale trade, retail trade and accommodation,” Stats SA said.

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According to the institution, manufacturing increased by some 1.1%, “contributing 0.1 of a percentage point”.

“Six of the ten manufacturing divisions reported positive growth rates in the second quarter. The following divisions made the largest positive contributions: motor vehicles, parts and accessories and other transport equipment; food and beverages; and basic iron and steel, non-ferrous metal products, metal products and machinery.

“The electricity, gas and water industry increased by 3.1%, contributing 0.1 of a percentage point. This was largely due to increases in electricity production and consumption, as well as water consumption,” Stats SA explained.

Decreases in transport, storage and communication contributed a -0.2% of a percentage point.

“Decreased economic activities were reported for land transport and transport support services.
“The agriculture, forestry and fishing industry decreased by 2.1%, contributing -0.1 of a percentage point. This was primarily due to decreased economic activities reported for field crops and animal products,” the institution added.

In terms of expenditure on GDP, Stats SA reported that expenditure on GDP grew by 0.5% during 2024’s second quarter after a decrease of some 0.1% in the first quarter.

“Household final consumption expenditure [HFCE] increased by 1.4%, contributing 0.9 of a percentage point to the total growth. The highest growth rates were reported for services and semi-durable goods.”

The main positive contributors to the increase in HFCE were expenditures on the ‘other’ category (4.5% and contributing 0.6 of a percentage point), clothing and footwear (3.2% and contributing 0.2 of a percentage point) and food and non-alcoholic beverages (1.2% and contributing 0.2 of a percentage point).

“Final consumption expenditure by general government increased by 1.0%, contributing 0.2 of a percentage point. This was mainly driven by increases in purchases of goods and services and compensation of employees,” Stats SA explained.

A decrease in exports out of South Africa was also noted.

“Net exports contributed negatively to expenditure on GDP. Exports of goods and services decreased by 0.4%, largely influenced by decreased trade in vegetable products; mineral products; vehicles and transport equipment excluding large aircraft; and base metals and articles of base metals.

“Imports of goods and services increased by 1.7%, largely influenced by increased trade in vehicles and transport equipment excluding large aircraft; vegetable products; mineral products; and textiles and textile articles,” Stats SA said.

– SAnews.gov.za

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