SA economy shrinks by 0.6% in third quarter – Stats SA

Stats SA released the latest GDP figures on Tuesday, offering South Africans more grim news about the state of the local economy, which contracted by 0.6% in quarter three of 2019.

Real GDP was down 0.1% year-on-year and 0.3% compared to the same nine-month period from the start of last year till end September.

The positive contributors to GDP growth came from trade, government, the finance sector and personal services.

The mining sector was down 6.1%, driven largely by a fall in the production of platinum group metals, coal and iron ore.

Manufacturing production fell by 3.9%, due to lower production of basic iron, steel, machinery products, and products related to petroleum, chemicals and plastics.

The transport, storage and communication industry also found itself on the back foot, falling by 5,4%. This was the biggest quarter-on-quarter fall for the industry since 1993.

Agriculture saw its third consecutive quarter of contraction. Lower production was recorded for field crops such as maize, wheat, sunflower seeds, tobacco and soya beans.

The construction industry registered its fifth consecutive quarter of negative growth. Decreases were reported for activities related to residential and non-residential buildings, as well as construction works.

Nominal GDP for the third quarter was estimated at R1.29 trillion, which was slightly higher than the R1.26 trillion recorded in quarter 2.

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