South Africa GDP Contracts 0.7% in Q2

The South African economy shrank a seasonally adjusted annualized 0.7 percent on quarter in the three months to June of 2018, following a 2.6 percent contraction in the prior period and missing market consensus of a 0.6 percent growth. It was the second consecutive quarter of contraction with the biggest downward contributions coming from agriculture, transport and trade.

The agriculture, forestry and fishing industry declined 29.2 percent, after contracting 33.6 percent in the the first quarter of 2018, mainly due to lower production of field crops and horticultural products. 

Transportation, storage and communication went down 4.9 percent, reversing from a 0.9 percent expansion in Q1. Decreases were reported for land transport, air transport and transport support services.

The trade, catering and accommodation sector decreased 1.9 percent, following a 3.1 percent fall, as retail and motor trade dropped.

Manufacturing fell 0.3 percent, after a 6.7 percent decline. Most of the divisions reported negative growth rates with the largest downward contributors coming from motor vehicles, parts and accessories and the furniture and ‘other’ manufacturing divisions.

In contrast, the main positive contributions came from mining and quarrying (4.9 percent from -10.3 percent in Q1); finance, real estate and business services (1.9 percent from 1.1 percent); construction (2.3 percent from -1.9 percent) and utilities (2.1 percent from 0.2 percent).

Year-on-year, the economy expanded 0.4 percent in the second quarter of 2018, slowing from a 0.8 percent growth in the previous period and below market expectations of a 1 percent expansion. It was the weakest growth rate since the first quarter of 2016 when the economy contracted 0.3 percent.

South Africa GDP Contracts 0.7% in Q2

Statistics South Africa | Stefanie Moya |
9/7/2018 10:14:22 AM