South Africa GDP Annual Growth Stalls in Q1

The South African economy showed no growth in the first quarter of 2019, after expanding 1.1 percent in the prior period and missing market expectations of a 0.7 percent growth. Slower rises were seen in manufacturing, transport & storage, finance and public administration. In addition, agriculture, mining, construction, utilities and trade posted contractions.

Softer growth was recorded in manufacturing (0.6 percent vs 1.3 percent in Q4); transport & storage (1.1 percent vs 2.4 percent); finance, real estate and business services (2.4 percent vs 3.1 percent) and government services (0.7 percent vs 1.0 percent).

At the same time, contractions were seen in agriculture (-9.4 percent vs -0.6 percent); mining (-4.6 percent vs -3.4 percent); electricity, gas and water (-1.1 percent vs 1.1 percent); construction (-2.9 percent vs -1.1 percent); trade, catering and accommodation (-0.6 percent vs 0.3 percent).

On a seasonally adjusted quarterly basis, the economy shrank 3.2 percent on quarter in the three months to March of 2019, after growing 1.4 percent in the previous period and more than an expected 1.7 percent decline. The contraction was mainly caused by Eskom's blackouts whose adverse effects were spread across sectors.

The central bank recently cut the country's 2019 GDP growth outlook to 1.0 percent from previous 1.3 percent. The government sees the economy expanding 1.5 percent in 2019.

South Africa GDP Annual Growth Stalls in Q1

Statistics South Africa | Luisa Carvalho |
6/4/2019 1:37:31 PM