By Lehlohonolo Lehana.
South Africa’s gross domestic product (GDP) contracted by 0.2% in Q3 2023 after two successive quarters of growth, Statistics South Africa announced on Tuesday.
The drop is broadly in line with economists’ expectations after a difficult three months for several industries.
Analysts polled by Reuters had predicted smaller third-quarter output declines, of 0.1% quarter-on-quarter and 0.2% year-on-year.
Chief Director for National Accounts at Stats SA, Bokang Vumbukani-Lepolesa, said agriculture, forestry and fishing industries decreased by 9,6%, contributing -0,3% to the negative GDP growth.
“This was primarily due to decreased economic activities reported for field crops, animal products and horticulture products.
“The manufacturing industry decreased by 1,3% in the third quarter, contributing -0,1 of a percentage point. Eight of the ten manufacturing divisions reported negative growth rates in the third quarter.
“The food, beverages and tobacco division made the largest contribution to the decrease in the third quarter.
“The petroleum, chemical products, rubber and plastic products division and the basic iron and steel, non-ferrous metal products, metal products and machinery division also made significant contributions to the contraction in this industry,” she said.
Lepolesa said the construction industry also recorded a 2,8% decline in the third quarter, contributing -0,1%.
“Decreases were reported for residential buildings, non-residential buildings and construction works. The mining and quarrying industry decreased by 1,1% in the third quarter.
Decreased economic activities were reported for platinum group metals (PGMs), gold, other metallic minerals and manganese ore. The trade, catering and accommodation industry decreased by 0,2% in the third quarter.
“Decreased economic activities were reported for wholesale trade, motor trade and food and beverages,” added Lepolesa.
Statistician Risenga Maluleke said, “Net exports also contributed negatively to expenditure on GDP in the third quarter. Exports of goods and services increased by 0.6%, largely influenced by increased trade in vehicles and transport equipment, pearls, precious and semi-precious stones, precious metals, and vegetable products.
Imports of goods and services decreased by 8.6%, which was largely influenced by decreased trade in machinery and electrical equipment, as well as chemical products, artificial resins and plastics, base metals and articles of base metals, vegetable products, and vehicles and transport equipement.
Overall, GDP in the third quarter of this year was lower than the peak reached in the third quarter of last year.
South Africa has been battered by a prolonged energy crisis resulting in daily power blackouts of up to 12 hours a day.
Troubles at state-owned rail and ports firm Transnet, hobbled by graft scandals, theft and maintenance issues, have further hampered economic activity.
South Africa is heading towards general elections in 2024 amid high unemployment and widespread disillusionment with the ruling African National Congress (ANC).