South Africa GDP Growth Slows to 0.8% YoY in Q1

The South African economy grew 0.8 percent year-on-year in the first quarter of 2018, easing from a 1.5 percent expansion in the previous period and below market expectations of 1.9 percent. It was the weakest growth rate since the second quarter of 2016, mainly due to a contraction in agriculture, forestry and fishing activities and mining.

Slower growth rates were seen for manufacturing (0.6 percent compared to 2.5 percent in Q4 2017) and elecricity, gas and water (1.2 percent compared to 1.9 percent). Additionally, output dropped for agriculture (-8.5 percent compared to 1.1 percent) and mining (-0.7 percent compared to 4.9 percent).

On the other hand, higher growth rates were recorded for transport, storage and communication (1.8 percent compared to 1.6 percent); personal services (1.3 percent compared to 0.8 percent);  government services (0.5 percent compared to 0.1 percent) and trade, catering and accommodation (0.3 percent compared to 0.1 percent). Also, finance, real estate and business services continued to rise (2.1 percent, the same pace as in Q4 2017) and construction fell at a softer pace (-0.7 percent compared to -1.2 percent).

On a seasonally adjusted quarterly basis, the economy shrank 2.2 percent, reversing from a 3.1 percent growth in the previous period and missing market consensus of a 0.5 percent contraction. The main contributors to the drop were field crops, horticultural products, platinum group metals and iron ore. 

South Africa GDP Growth Slows to 0.8% YoY in Q1

Statistics South Africa | Stefanie Moya |
6/5/2018 9:59:22 AM