StatsSA has released gross domestic product (GDP) data for the first quarter of 2024, showing South Africa’s GDP has decreased by 0,1%.
In terms of sectors, the largest decrease was in the construction industry which decreased by 3.1%, contributing -0,1 of a percentage point. This was followed by the mining and quarrying industry which decreased by 2,3%, also contributing -0,1 of a percentage point. Decreased activities were noted for the platinum group metals (PGMs), coal, gold and manganese ore.
Manufacturing decreased by 1,4% contributing -0,2 of a percentage point to the negative GDP growth. The motor vehicles, parts and accessories and other transport equipment division and the basic iron and steel, non-ferrous metal products, metal products and machinery division made the largest negative contributions to the decrease in the first quarter.
Positively, the agriculture, forestry and fishing industry increased by 13,5%, contributing 0,3 of a percentage point. This was primarily due to increased economic activities reported for horticulture products.
In terms of expenditure on real GDP, this decreased by 0,2% in the first quarter of 2024, following an increase of 0,3% in the fourth quarter of 2023.
Household final consumption expenditure decreased by 0,3%, contributing -0,2 of a percentage point to the total negative growth. The main contributors were expenditures on clothing and footwear, transport, and the ‘other’ category. Final consumption expenditure by general government decreased by 0,3%, contributing -0,1 of a percentage point. This was mainly driven by decreases in purchases of goods and services and compensation of employees.
Total gross fixed capital formation decreased by 1,8%, contributing -0,3 of a percentage point. The main negative contributors to the decrease were machinery and other equipment, residential buildings, and construction works. There was also a R5,5 billion drawdown of inventories (seasonally adjusted and annualised value). Large decreases in three industries, namely manufacturing; mining and quarrying; and personal services, contributed to the inventory drawdown.
Net exports contributed positively to expenditure on GDP. Exports of goods and services decreased by 2,3%, largely influenced by decreased trade in pearls, precious and semi-precious stones and precious metals; vehicles and transport equipment excluding aircraft; chemical products; base metals and articles of base metals; and mineral products. However, imports of goods and services decreased more - by 5,1% - largely influenced by decreased trade in mineral products; vehicles and transport equipment excluding aircraft; and vegetable products.
We will keep you informed of development in this regard as new data is released.
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