GDP contracts by 0.3% in third quarter
The country’s economy declined by 0.3% between July and September, Statistics South Africa announced on Tuesday.
The decline comes after the country recorded a 0.4% growth in the second quarter between April and June.
The agricultural sector was the most significant contributor to the drop in the Gross Domestic Product during the third quarter.
Agriculture recorded its second consecutive decline, falling by 28,8% in the third quarter.
Four of the ten production industries recorded a negative growth in the third quarter of the year.
These include transport storage and communication, trade, catering and accommodation, and government services.
Statistics South Africa’s Chief Director for National Accounts, Bokang Vumbukani-Lepolesa, said the electricity, gas and water supply industry expanded by 1.6% for a second straight quarter.
"Driven higher by a rise in electricity generation and consumption. Stronger manganese and chromium ore production helped boost mining. Iron, steel and machinery production drove much of the upward momentum in manufacturing.
"Construction’s second straight rise of 1.1% may seem relatively small, but it’s the biggest increase in two years. The positive showing in the third quarter was mainly driven by construction works, with support from activities related to non-residential buildings."
Vumbukani-Leplesa said exports decreased by 3.7% - the largest decline in three years.
"The slump was mainly due to weaker trade in pearls, precious & semi-precious stones and precious metals; vehicles & transport equipment (excluding large aircraft); chemical products; base metals & articles of base metals; and machinery and electrical equipment.
"Imports were also down (-3.9%), driven lower by decreased trade in vehicles and transport equipment (excluding large aircraft); mineral products; vegetable products; and base metals & articles of base metals."
She added that recreation and culture recorded the highest growth rate at 1.2%.
"Closer exploration of this category shows gambling as a notable contributor to this increase. Gambling has risen sharply in recent years, according to the latest set of statistics from the South African National Gambling Board.
"Gross gambling revenue totalled R59,3 billion in 2023/24, a 25,7% rise from the year before. This follows an increase of 37,0% in 2022/23."
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