South Africa GDP Growth Strongest Since 2016

The South African economy advanced an annualized 3.1 percent on quarter in the last three months of 2017, following an upwardly revised 2.3 percent rise in the previous period and beating market expectations of 1.8 percent. It is the strongest growth rate in six quarters, mainly due to a robust gain in agriculture, a rebound in internal trade and a faster increase in manufacturing.

Agriculture made the largest upward contribution to GDP growth, up by 37.5 percent, following a 41.1 percent jump in Q3, mainly due to higher production of animal products. Other positive contributions came from: trade, catering and accomodation (4.8 percent compared to -0.1 percent), namely wholesale, retail and motor trade; manufacturing (4.3 percent compared to 3.7 percent), namely food and beverages, petroleum, chemical products, rubber and plastic products; basic iron and steel, non-ferrous metal products, metal products and machinery. Also, strong growth was reported for; finance, real estate and business services (2.5 percent compared to 1.9 percent), namely financial intermediation and auxiliary activities; transport, storage and communication (2.8 percent compared to 0.8 percent), namely land freight transportation and communication services; government services (1.4 percent compared to 1.1 percent); and electricity, gas water (3.3 percent compared to -6.1 percent). On the other hand, contraction were seen for mining (-4.4 percent compared to 6.2 percent), largely due to lower production of gold and platinum group metals; and construction (-1.4 percent compared to -1.2 percent), due to both residential and non-residential buildings.

Year-on-year, the GDP grew 1.5 percent, following an upwardly revised 1.3 percent growth in Q3 and beating forecasts of 1.4 percent. It is the highest growth rate since the first quarter of 2015.

Considering full 2017, the GDP advanced 1.3 percent, above 0.6 percent in 2016. A rebound was seen in agriculture, fishing and forestry (17.7 percent compared to -10.2 percent in 2016) and in mining and quarrying (47.6 percent compared to -4.2 percent). In contrast, contraction was observed in trade, catering and accomodation (-0.6 percent compared to 1.7 percent), manufacturing (-0.2 percent compared to 0.9 percent) and construction (-0.3 percent compared to 1.1 percent).

South Africa GDP Growth Strongest Since 2016

Statistics South Africa | Joana Taborda |
3/6/2018 11:39:30 AM