Gross domestic product (measured by production)

South Africa's gross domestic product (GDP) growth rate increased by 1,4% in the fourth quarter of 2018.

The manufacturing industry expanded by 4,5% in the fourth quarter. The divisions that made the largest contributions to the increase were petroleum, chemical products, rubber and plastic products; motor vehicles, parts and accessories and other transport equipment; and food and beverages.

Finance, real estate and business services increased by 2,7% in the fourth quarter. Increased economic activity was reported for financial intermediation, insurance, auxiliary activities and real estate.

The transport, storage and communication industry increased by 7,7%, as a result of increases in land transport and transport support services.

In contrast, the trade, catering and accommodation industry decreased by 0,7%. Decreased economic activity was reported in wholesale trade, motor trade and catering and accommodation.

Mining decreased by 3,8% and contributed -0,3 of a percentage point to GDP growth, and construction decreased by 0,7%. General government services decreased by 0,6%.

Expenditure on GDP

Expenditure on real gross domestic product increased by 1,6% in the fourth quarter of 2018

Household final consumption expenditure increased by 3,2% in the fourth quarter, contributing 2,0 percentage points to total growth. The main contributors to growth in HFCE were furnishings, household equipment and maintenance (6,9% and contributing 0,6 of a percentage point), clothing and footwear (10,2% and contributing 0,6 of a percentage point), food and non-alcoholic beverages (2,7% and contributing 0,5 of a percentage point) and transport (3,3% and contributing 0,5 of a percentage point).

Final consumption expenditure by general government increased by 0,6%. An increase in spending on goods and services was reported in the fourth quarter.

Gross fixed capital formation decreased by 2,5%, its fourth consecutive decline. The main contributors to the decline were machinery and other equipment, residential buildings and construction works.

There was a R53,9 billion drawdown of inventories in the fourth quarter of 2018. Large decreases were reported in mining and quarrying and manufacturing.

Net exports contributed positively to growth in expenditure on GDP in the fourth quarter. Exports of goods and services were up 11,1%, largely attributable to increased trade in precious metals, mineral products and vehicles and transport equipment.

Imports of goods and services decreased by 16,0%, driven largely by a decrease in imports of machinery and electrical equipment and mineral products.