Cape Town – South Africa’s real Gross Domestic Product (GDP) increased by 0.6% in the second quarter of 2023, driven by growth in six industries, including manufacturing and finance, Stats SA has announced on Tuesday.
The country saw a surge in investments in machinery and equipment, particularly related to renewable energy, it said.
“On the demand side, the country benefitted from a sharp rise in investments in machinery and equipment, which included products related to renewable energy. Despite a decline in the overall household consumption, consumers continued to spend more on restaurants and hotels,” Stats SA said
[ 🧵] SA’s #economy grew by 0,6% in Q2:2023. #GDP in Q2:2023 is lower than the peak reached in Q3:2022.#StatsSA pic.twitter.com/lbwdZsmoJ1
— Stats SA (@StatsSA) September 5, 2023
Manufacturing production expanded by 2.2%, with petroleum and metal industries contributing.
“Manufacturing production expanded by 2.2%, mainly pushed higher by petroleum, chemical products, rubber and plastic products. Manufacturers in metals, metal products, machinery and equipment also recorded a good quarter, driven in part by increased demand for crude steel.
“Increased investment in South Africa’s automotive sector helped lift the production of transport equipment and motor vehicles. The finance industry edged higher by 0.7%, boosted by financial intermediation, insurance and real estate services,” Stats SA said.
South Africa’s agriculture and mining sectors also saw positive growth.
However, the transport and trade industries declined, while the construction industry lost steam in the second quarter.
Investments in machinery and equipment, especially for electricity infrastructure, played a significant role in boosting GDP.
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Compiled by Betha Madhomu
