South African GDP Contracts 1.2% in Q1

The South African economy shrank an annualized 1.2 percent on quarter in the three months to March of 2016, compared to a 0.4 percent growth in the previous quarter and worse than market expectations of 0.1 percent drop. It is the first contraction since the second quarter last year, dragged down by mining and quarrying and transport sectors.

The mining and quarrying sector shrank an annualized 18.1 percent (+1.4 percent in Q4), transport fell 2.7 percent (-0.3 percent in Q3), agriculture contracted for the fifth consecutive period by 6.5 percent (-6.7 percent in Q4) and electricity, gas and water declined 2.8 percent (+1 percent in Q4). 

In contrast, activities in wholesale, retail, motor trade, catering and accommodation advanced 1.3 percent, following a 2.6 percent growth in Q4 and construction rose at a slower 0.5 percent following a 1.4 percent growth in the previous period. Finance, real estate and business services rose 1.9 percent (+1.7 percent in Q4) and general government services expanded 1.1 percent (+1.2 percent in Q4).

Year-on-year, the economy contracted 0.2 percent, following 0.5 percent growth in the fourth quarter, the first drop since the fourth quarter of 2009.

South African GDP Contracts 1.2% in Q1

Statisitics South Africa | Yekaterina Guchshin |
6/8/2016 1:21:15 PM