PHOTO: STATS SA
The country’s economy grew by 0.4% between April and June, Statistics South Africa announced on Tuesday.
Seven of the ten production industries recorded positive growth in the second quarter of the year.
These include finance, manufacturing, trade, and electricity, gas and water supply.
On the production side of the economy, the finance, real estate, and business services industries had the biggest impact, adding 0.3 percentage points to gross domestic product growth.
Statistics South Africa’s Chief Director for National Accounts, Bokang Vumbukani-Lepolesa, said retail and tourism pushed the trade, catering, and accommodation industry higher by 1.2%.
"Other notable contributors include manufacturing, trade, and electricity, gas & water. Manufacturing turned positive after shrinking in the first quarter, rising by 1,1% in the second quarter. Production was mainly driven by motor vehicles and transport equipment and food & beverages.”
The construction industry showed growth after a year of decline, edging marginally higher in the second quarter.
However, setbacks occurred in some industries, including transport, storage, and communication, which declined by 2.2% and dragged GDP growth down by 0.2 percentage points.
Vumbukani-Lepolesa said the lack of load shedding also helped.
“The country experienced no load shedding in the second quarter, which helped the electricity, gas and water supply industry. It grew by 3.1%, driven by increased electricity generation and water distribution.
“If we ignore the topsy-turvy economic environment caused by the pandemic in 2020, the 3.1% growth rate represents the sharpest increase since the third quarter of 2008, which was also 3.1.”
'ADAPTING'
Meanwhile, Agri SA acknowledged the latest GDP figures released by Stats SA, showing that whilst the national GDP ticked up 0,4% in the second quarter of 2024, it said the agricultural sector actually decreased by 2,1% in the same period.
It said the outcome was unsurprising for the sector as it navigated dry spells in key producing areas, coupled with animal health concerns.
“The GDP data reminds us of the importance of agriculture as a cornerstone of the South African economy, particularly for South Africa’s economic health and ultimately food security,” said Agri SA Chief Executive Officer Johann Kotzé.
“Farmers are already adapting through technological investment and innovatively mitigating risks both on farm level and across value chains, however more can and needs to be done.
"Therefore, farmers should remain focused on driving efficiencies and actively work towards long-term sustainable growth.”
