SA’s GDP grows by 0.4% in Q2 2024

Economy

Cape Town – South Africa’s GDP grew by 0.4% in the second quarter of 2024, driven mainly by the finance, real estate, and business services sectors, which increased by 1.3% and contributed 0.3 percentage points to the overall growth, according to Statistics South Africa (Stats SA).

“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 on Tuesday.

The electricity, gas, and water sector also saw a 3.1% rise. However, declines in the transport and agriculture sectors negatively impacted growth, with the agriculture, forestry, and fishing industry decreasing by 2.1%.

Expenditure on GDP grew by 0.5%, with household consumption rising by 1.4%, mainly driven by services, semi-durable goods, and increased spending on clothing, footwear, food, and beverages.

Government consumption also increased by 1.0%, largely due to higher spending on goods, services, and employee compensation.

However, net exports contributed negatively, as exports decreased by 0.4% and imports rose by 1.7%, influenced by increased trade in vehicles, transport equipment, and various products.

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Compiled by Betha Madhomu

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