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Statistics South Africa says the 1.6% rise in Gross Domestic Product in the third quarter not only boosted the economy back above pre-pandemic levels, but quarterly real GDP was also the highest it’s ever been, exceeding the previous peak of R1 152 billion recorded in the fourth quarter of 2018.
Stats SA said after contracting by 0.7% in the second quarter of 2022, the economy rallied in the third quarter on the back of the agriculture, finance, transport, and manufacturing industries.
"The demand side of the economy was lifted by a rise in exports and government consumption," said Statistician-General Risenga Maluleke.
"The size of the economy now exceeds pre-pandemic levels. Real gross domestic product (GDP), measured by production, was R1 161 billion (constant 2015 prices) in the third quarter, which is above the previous peak of R1 152 billion recorded in the fourth quarter of 2018."
Stats SA said eight of the ten industries recorded an increase in economic output in the third quarter, with agriculture, forestry, and fishing making the largest positive contribution, increasing by 19.2%.
"This was mainly associated with a rise in the production of field crops and horticulture products."
The finance, real estate, and business services industry was the second largest positive contributor, expanding by 1.9%.
"Because this is the largest industry in the economy (contributing almost a quarter of value added), a change in its fortunes typically has a noticeable impact on GDP," Maluleke said.
Growth in the third quarter was driven by financial intermediation, insurance, pension funding, auxiliary activities, and real estate and other business services.
Transport, storage, and communication expanded on the back of increased economic activity in land transport, transport support services, and communication services.
The manufacturing industry was also a significant positive contributor, with output bolstered mainly by the automotive sector, food and beverages, and metal products sector.
"On the downside, the personal services and electricity, gas, and water supply industries contracted in the third," Maluleke said.
