Economy grows by 1,9% in first quarter
South Africa's economy grew by 1,9% in the first quarter of 2022 representing a second consecutive quarter of upward growth.
Statistics South Africa released the data from January to March on Tuesday – saying the economy is finally at pre-pandemic levels.
The manufacturing sector saw strong growth of almost 5% in the first quarter, driven by a rise in the production of petroleum and chemicals, food and beverages, and metals and machinery.
The sharp increase in manufacturing output was mainly driven by a rise in the production of petroleum and chemicals, food and beverages, and metals and machinery.
The economic impact of the devastating floods in KwaZulu-Natal that happened in April will only reflect in the GDP results due for release in September.
[Thread] South Africa’s #economy grew by 1,9% in Q1:2022, returning to pre-pandemic levels. #StatsSA #GDP pic.twitter.com/wmrIhrR3I8
— Stats SA (@StatsSA) June 7, 2022
After a strong fourth quarter, agriculture growth was more subdued in the first quarter, edging higher by 0,8%. The rise in the first quarter was mainly underpinned by increased horticulture production.
The economy also recorded a rise in exports, mainly driven by increased trade in motor vehicles, parts and accessories; mineral products; and machinery and equipment.
The automotive sector plays an important role in both export and import markets, as outlined in a recent article that tracks the flow of products through the South African economy.
Household consumption increased by 1,4% in the first quarter. The hospitality sector saw a sharp rise in activity as consumer spending on restaurants and hotels increased by 6,5%.
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