According to new Gross Domestic Product numbers, released by Statistics SA on Tuesday, The South African economy shrank by 1.4% in the fourth quarter of 2019.
Stats SA reports that seven of the ten industries contracted in the fourth quarter. Finance, mining and personal services managed to keep their heads above water, but this was not enough to prevent the economy from sliding into recession.
Household spending increased by 1,4%. Spending on clothing & footwear was up by 8,5%. Spending on furnishings and household equipment climbed by 3,6%.
South Africa’s economy grew by 0,2% in 2019, the lowest reading since 2009 when the economy contracted by 1,5%.
Agriculture experienced its fourth consecutive quarter of negative growth, falling by 7,6%. Late rains and heatwave conditions across the country – in particular Eastern Cape and Free State – affected the production of field crops. The country also produced less horticulture products in the fourth quarter.
Ironically, as drought affected one industry, heavy rains damaged another. Flooding at some power stations and disruptions to coal deliveries caused by rain contributed to the electricity, gas and water supply industry’s poor showing in the fourth quarter.
The industry didn’t escape the shock of the heatwave either. Falling dam levels in various parts of the country resulted in water restrictions, reducing activity in the water supply industry.
The number of civil servants employed decreased across all levels of government, with the exception of municipalities. This dragged the industry lower by 0,4%. In particular, contracts for part-time employees came to an end across a number of higher education institutions. There were also a number of terminations and retirements across other spheres of government.
