South Africa GDP Contracts in Q1

South African economy shrank a seasonally adjusted annualized 0.6 percent in the first quarter of 2014. It is the first contraction since the 2009 recession, as the strike in the platinum sector dragged mining and manufacturing output down.

Output in the mining and quarrying industry contracted sharply by 24.7 percent quarter-on-quarter, due to lower production in the mining of gold, the mining of other metal ores (including platinum) and ‘other’ mining and quarrying (including diamonds).

The manufacturing industry shrank 4.44 percent, mainly due to lower production of petroleum, chemical products, rubber and plastic products, basic iron and steel, non-ferrous metal products, metal products and machinery division. 

In contrast, construction activities recorded the highest growth rate (4.9 percent qoq), followed by agriculture (2.5 percent). The wholesale, retail and motor trade; catering and accommodation industry advanced 2.1 percent and economic activity in finance, real estate and business services grew 2.0 percent, due to activities in the equity, bond and other financial markets. 

Year-on-year, the economy advanced 1.6 percent, slowing from a 2 percent expansion in the previous quarter. 

South Africa GDP Contracts in Q1

Statistics South Africa | Joana Taborda |
5/27/2014 10:51:07 AM