IMPROVING LIVES THROUGH DATA ECOSYSTEMS

Press statement                                                                                  Embargo: Tuesday 6 December 2016, 09:30

 GDP in the third quarter of 2016 grew by 0,2%

Gross domestic product (measured by production)

South Africa’s gross domestic product (GDP) growth rate was 0,2% in the third quarter of 2016.1
The main contributors to the GDP growth rate were the mining and quarrying industry; finance, real estate and
business services; and general government services. Mining and quarrying increased by 5,1%, largely as a result
of higher production in the mining of ‘other’ metal ores, in particular iron ore.

Four industries contracted in the third quarter, namely agriculture, forestry and fishing (-0,3%); manufacturing
(-3,2%); electricity, gas and water (-2,9%); and trade, catering and accommodation (-2,1%). The agriculture,
forestry and fishing industry has been in decline for seven consecutive quarters.

Expenditure on GDP2

Expenditure on real gross domestic product grew by 0,5% in the third quarter of 2016.

Household final consumption expenditure increased by 2,6% in the second quarter. Apart from the ‘other’ category
the increase was mainly the result of expenditure on health services, which increased by 10,0% and contributed
0,7 of a percentage point to growth in HFCE.

Government final consumption expenditure increased by 2,1%.

Gross fixed capital formation decreased by 1,0%. The main contributor to the decline was transport equipment.

There was a R20 billion build-up of inventories in the third quarter (following a R28 billion drawdown in the second
quarter), which contributed 6,3 percentage points to total growth.

Net exports contributed negatively to total expenditure on GDP. Exports decreased by 26,4%, mainly because of
lower exports of precious metals and transport equipment. Imports decreased by 4,9%, mainly because of lower
imports of machinery and electrical equipment.

1 Unless otherwise specified, quarter-on-quarter growth rates are seasonally adjusted and annualised. All growth rates are calculated on
the basis of series at constant prices. The GDP estimates are preliminary and may be revised.
2 The figures showing growth in expenditure on GDP exclude the residual, calculated as the difference between GDP measured by
production and the sum of the expenditure components. For more detail see Table 30 on the Stats SA website.