GDP figures for the third quarter show that South Africa’s economy did not grow at all.
South Africa’s GDP decreased in the third quarter despite positive signs of economic growth that led economists to expect the economy to grow by up to 0.5%.
South Africa’s gross domestic product (GDP) decreased by 0.3% in the third quarter of 2024, after increasing by 0.3% in the second quarter of the year, mainly driven by the agriculture, forestry and fishing industry decreasing by 28.8%, primarily due to decreased economic activities reported for field crops.
Economists expected GDP to increase by between 0.2% and 0.5% and not one of them expected a decrease, although they did not expect the GDP figures to shoot the lights out.
According to Statistics SA, the transport, storage and communication industry decreased by 1.6%, while decreased economic activities were also reported for land transport and transport support services. The trade, catering and accommodation industry decreased by 0.4%, with decreased economic activities reported for wholesale trade, motor trade and food and beverages.
General government services also decreased by 0.1%, mainly due to decreased employment in national and provincial government and extra-budgetary institutions.
Increases were noted in the finance, real estate and business services industry that increased by 1.3%, with increased economic activities reported for financial intermediation, insurance and pension funding, auxiliary activities, real estate activities and other business services.
The personal services industry increased by 0.5%, with increased economic activities reported for health and education. The manufacturing industry increased by 0.5%, with three of the 10 manufacturing divisions reporting positive growth rates.
The largest positive contribution was reported for the basic iron and steel, non-ferrous metal products, metal products and machinery division.
The mining and quarrying industry increased by 1.2%, with increased economic activities reported for manganese and chromium ore.
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