South Africa's first-quarter GDP grows by 0.4%
The country’s economy grew by 0.4% during the first quarter of the year, Statistics South Africa announced on Tuesday.
The growth comes despite record levels of load shedding.
The economy shrank by a revised 1.1% in the fourth quarter of 2022.
Chief Director for National Accounts Bokang Vumbukani Lepolesa said eight industries recorded growth in the first quarter.
The manufacturing and finance industries were the largest positive contributors to growth in the first quarter.
“Eight of the ten industries recorded growth in the first three months of the year with manufacturing and finance, real estate and business services the largest positive contributors. Manufacturing output increased by 1,5%, adding 0,2 of a percentage point to GDP growth,” said Lepolesa.
“The production of food and beverages was the main catalyst behind the industry’s positive showing.
“Finance, real estate & business services crept up by 0,6%, mainly driven by financial intermediation, insurance & pension funding, real estate and business services. Personal services increased by 0,8%, driven by increased activity in community services.”
Agriculture, forestry and fishing were the biggest drag on first-quarter growth.
“Agriculture slumped by 12,3%, weighed down by a decline in the production of field crops and animal products. Agriculture was the largest negative contributor in the first quarter, subtracting 0,4 of a percentage point from GDP growth.”
Households increased spending on restaurants & hotels by 6,9%, being the largest positive contributor to the 0,4% rise in overall household consumption expenditure.
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