Cape Town – Statistics SA has revealed that the economic growth rate in South Africa during the first quarter of the year was 0.4%.
The increase was attributed to improved manufacturing output and the finance industry’s performance, which aided in the country’s economic recovery.
“The manufacturing and finance industries were the major drivers of growth on the supply side of the economy. The demand side was lifted by exports, with smaller positive contributions for household, government, and investment spending,” Stats SA said.
[?] The South African #economy grew by 0,4% in Q1:2023. #GDP in Q1: 2023 is lower than the peak reached in Q3: 2022.#StatsSA #GDP pic.twitter.com/ElBSbhoYkh
— Stats SA (@StatsSA) June 6, 2023
Positive contributions to GDP also came from exports, household consumption, government spending, and investment.
Among the industries, manufacturing and finance, real estate & business services recorded the largest positive contributions to growth.
The production of food and beverages played a significant role in the growth of the manufacturing sector.
Other industries that experienced growth were transport, storage & communication (assisted by rail freight and rail passenger transport), mining (led by platinum group metals and gold), and trade (especially wholesale and retail trade).
Latest #GDP release shows that 8 industries recorded growth in Q1:2023. Join #StatsSA on @TurfFM at 12h15 today as we discuss the latest Gross Domestic Product statistical release.
More here: https://t.co/1h76jkke67#economy pic.twitter.com/3ivWqXs5ik— Stats SA (@StatsSA) June 6, 2023
However, the electricity, gas & water and agriculture sectors contracted in the first quarter.
Agriculture, in particular, slumped by 12.3%, mainly due to declines in the production of field crops and animal products.
On the expenditure side, South African exports expanded by 4.1%, driven by increased trade in base metals, food, and machinery & electrical equipment.
Exports increased by 4,1% in Q1:2023. The rise in Q1: 2023 was largely influenced by increased trade in metals; vegetable products; prepared foodstuffs, beverages & tobacco; and machinery & electrical equipment.
Read more here: https://t.co/1h76jkke67#StatsSA #economy #GDP pic.twitter.com/4quPBMI00s
— Stats SA (@StatsSA) June 6, 2023
Gross fixed capital formation increased due to government investment, while households increased spending on restaurants & hotels. Imports also rose, primarily in machinery & equipment, chemical products, vehicles & transport equipment, and prepared foodstuffs & beverages.
Although GDP experienced a 0.4% rise in the first quarter of 2023, it is still below the all-time high reached in the third quarter of 2022.
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Compiled by Betha Madhomu
