South Africa GDP Growth Slows to 0.2% QoQ in Q3

The South African economy expanded an annualized 0.2 percent on quarter in the three months to September of 2016, compared to an upwardly revised 3.5 percent growth in the June quarter and below market estimates of a 0.5 percent expansion. It was the second straight quarter of growth, mainly supported by mining, general government services and real estate activities while manufacturing shrank.

The largest contributor to GDP growth was mining and quarrying,  growing 5.1 percent and contributing 0.4 percentage point. This was largely the result of increased production in the mining of ‘other’ metal ores, in particular iron ore.

General government services advanced 1.8 percent and contributed 0.3 percentage point to growth.

Growth in finance, real estate and business services went up 1.2 percent and contributed 0.2 percentage point to growth. Activity increased for financial intermediation, auxiliary activities and real estate services.

In contrast, manufacturing industry contracted by 3.2 percent, compared to a 8.1 percent expansion the the June quarter. Notable decreases were reported by the petroleum products, chemicals, rubber and plastic division; the basic iron and steel, non-ferrous metal products, metal products and machinery division; and the food, beverages and tobacco division. The output for electricity, water and gas shrank 2.9 percent, compared to a 1.8 percent decline in the June quarter,  largely due to a decline in electricity consumed. Similarly, the amount of water distributed decreased, mainly driven by continued dry conditions and water restrictions in most parts of the country. The agricultural sector shrank 0.3 percent, following a 0.8 percent decline in the previous period. It marks the seventh consecutive quarter of contraction due to severe droughts, mainly due to a decline in horticulture products.

Year-on-year, the economy grew by 0.7 percent, the same from an upwardly revised figure in the second quarter.

South Africa GDP Growth Slows to 0.2% QoQ in Q3

Statistics South Africa l Rida Husna |
12/6/2016 8:36:13 AM