Business 7.3.2017 12:37 pm

SA GDP shrinks 0.3% in fourth quarter

SA GDP shrinks 0.3% in fourth quarter

Mining and quarrying decreased by 11.5% in the fourth quarter.

South Africa’s gross domestic product (GDP) contracted 0.3% between October and December 2016, Statistics South Africa (StatsSA) said on Tuesday.

StatsSA said the 2016 fourth quarter saw the first negative fourth-quarter growth since the 2.3% decline in 2008.

The main contributors to the negative GDP growth rate were the mining and quarrying industry and the manufacturing industry. Mining and quarrying decreased by 11.5 percent in the fourth quarter.

StatsSA said this was largely the result of lower production in coal, gold and ‘other’ metal ores, including platinum.

Manufacturing decreased by 3.1% largely as a result of lower production in the manufacturing of food and beverages, manufacturing of petroleum, chemical products, rubber and plastic products and manufacturing of motor vehicles, parts and accessories and other transport equipment.

The agriculture, forestry and fishing industry has been in decline for eight consecutive quarters.

StatsSA said the largest positive contributors were the trade, catering and accommodation industry and finance, real estate and business services, which increased by 2.1% and 1.6% respectively, and each contributed 0.3 of a percentage point to GDP growth.

In terms of provinces, Gauteng remained the economic hub of South Africa, contributing just over a third of all economic activity in the country, while North West recorded highest provincial growth at 4.9 percent mainly due to rebound in mining sector.

– African News Agency (ANA)

ALSO READ: 

SA asset management industry ‘slow to transform’

 

 

 

 

 

today in print