GDP decreased by 0,3% in the third quarter of 2024

Gross domestic product (measured by production)

South Africa’s gross domestic product (GDP) decreased by 0,3% in the third quarter of 2024, following an increase of 0,3% in the second quarter of 2024.

The agriculture, forestry and fishing industry decreased by 28,8%, contributing -0,7 of a percentage point to the negative GDP growth. This was primarily due to decreased economic activities reported for field crops.

The transport, storage and communication industry decreased by 1,6%, contributing -0,1 of a percentage point. Decreased economic activities were reported for land transport and transport support services.

The trade, catering and accommodation industry decreased by 0,4%. Decreased economic activities were reported for wholesale trade, motor trade and food and beverages.

General government services decreased by 0,1%, mainly due to decreased employment in national and provincial government and extra-budgetary institutions.

The finance, real estate and business services industry increased by 1,3%, contributing 0,3 of a percentage point. Increased economic activities were reported for financial intermediation, insurance and pension funding, auxiliary activities, real estate activities and other business services.

The personal services industry increased by 0,5%, contributing 0,1 of a percentage point. Increased economic activities were reported for health and education.

The manufacturing industry increased by 0,5%, contributing 0,1 of a percentage point. Three of the ten manufacturing divisions reported positive growth rates. The largest positive contribution was reported for the basic iron and steel, non-ferrous metal products, metal products and machinery division.

The mining and quarrying industry increased by 1,2%, contributing 0,1 of a percentage point. Increased economic activities were reported for manganese and chromium ore.

Expenditure on GDP

Expenditure on real GDP decreased by 0,2% in the third quarter of 2024, following an increase of 0,4% in the second quarter of 2024.

Household final consumption expenditure (HFCE) increased by 0,5%, contributing 0,3 of a percentage point to the total negative growth. The highest growth rates were reported for non-durable and semi-durable goods.   

The main positive contributors to the increase in HFCE were expenditures on food and non-alcoholic beverages (0,9% and contributing 0,1 of a percentage point), housing, water, electricity, gas and other fuels (0,6% and contributing 0,1 of a percentage point), recreation and culture (1,2% and contributing 0,1 of a percentage point) and restaurants and hotels (1,1% and contributing 0,1 of a percentage point).

Final consumption expenditure by general government decreased by 0,5%, contributing -0,1 of a percentage point. This was mainly driven by decreases in purchases of goods and services and compensation of employees.

Gross fixed capital formation increased by 0,3%. The main positive contributors to the increase were other assets (4,4% and contributing 0,5 of a percentage point), construction works (1,4% and contributing 0,2 of a percentage point) and machinery and other equipment (0,5% and contributing 0,2 of a percentage point).

There was a R6,6 billion drawdown of inventories (seasonally adjusted and annualised value). Large decreases in three industries, namely manufacturing; electricity, gas and water; and mining and quarrying, contributed to the inventory drawdown.

Net exports contributed positively to expenditure on GDP. Exports of goods and services decreased by 3,7%, largely influenced by decreased trade in pearls, precious and semi-precious stones and precious metals; vehicles and transport equipment excluding large aircraft; chemical products; base metals and articles of base metals; and machinery and electrical equipment.

Imports of goods and services decreased by 3,9%, largely influenced by decreased trade in vehicles and transport equipment excluding large aircraft; mineral products; vegetable products; and base metals and articles of base metals.