SA’s GDP slips as manufacturing, mining dither

Statistics South Africa (Stats SA) has announced South Africa’s GDP decreased by 0.1% in the first quarter of this year, with decreases in the manufacturing sector and the mining and quarrying industry.

The first quarter GDP data for 2024 were released on Tuesday as the country waits to see what configuration of coalition or minority government will govern after last week’s elections where the ANC lost its outright majority for the first time since 1994.

“The manufacturing industry decreased by 1.4% in the first quarter of 2024, contributing -0.2 of a percentage point to the negative GDP growth. Five of the 10 manufacturing divisions reported negative growth rates in the first quarter.

“The mining and quarrying industry decreased by 2.3% in the first quarter, contributing -0.1 of a percentage point. Decreased economic activities were reported for platinum group metals, coal, gold and manganese ore.”

Stats SA said the construction industry decreased by 3.1% in the first quarter of 2024, contributing -0.1 of a percentage point with decreases reported for residential buildings and construction works.

The agriculture, forestry and fishing industries increased by 13.5% in the first quarter, contributing 0.3 of a percentage point due to increased economic activities reported for horticulture products.

The GDP statistical release said expenditure on real GDP decreased by 0.2% in the first quarter of 2024 after an increase of 0.3% in the fourth quarter of 2023. Household consumption expenditure decreased by 0.3%, with decreases for durable goods, semi-durable goods and services.

Net exports of goods and services decreased by 2.3%, while imports of goods and services decreased by 5.1%. There was a R5.5bn drawdown of inventories in the first quarter.

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