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South Africa’s Gross Domestic Product (GDP) expanded by 0.4% in the second quarter of 2024, driven largely by growth in the finance, real estate, and business services sectors. This was revealed by Statistics South Africa (Stats SA) in the latest GDP report released on Tuesday.
The finance, real estate, and business services sector saw a 1.3% increase, contributing 0.3 percentage points to the overall GDP growth. This growth was attributed to higher economic activities in financial intermediation, auxiliary activities, real estate, and other business services.
The trade, catering, and accommodation industry also experienced a boost, growing by 1.2% and adding 0.1 percentage points to the GDP. This increase was driven by heightened activities in wholesale and retail trade, as well as accommodation services.
Manufacturing recorded a 1.1% increase, contributing 0.1 percentage points to GDP growth. Six out of ten manufacturing divisions reported positive growth, with notable contributions from the motor vehicles, parts and accessories, food and beverages, and basic iron and steel sectors.
The electricity, gas, and water industry grew by 3.1%, contributing 0.1 percentage points to the GDP. This was primarily due to increased electricity production and consumption, along with higher water consumption.
However, the economy also faced some challenges. The transport, storage, and communication sector declined, contributing -0.2 percentage points to GDP. This was due to reduced activities in land transport and transport support services. Additionally, the agriculture, forestry, and fishing industry saw a 2.1% decrease, contributing -0.1 percentage points, driven by lower output in field crops and animal products.
On the expenditure side, GDP grew by 0.5% in the second quarter of 2024, rebounding from a 0.1% decrease in the first quarter. Household final consumption expenditure (HFCE) increased by 1.4%, contributing 0.9 percentage points to overall growth. The most significant contributors to this increase were expenditures on services, semi-durable goods, clothing and footwear, and food and non-alcoholic beverages.
Government final consumption expenditure rose by 1.0%, driven by increased purchases of goods and services and employee compensation.
Despite these positive trends, the report also noted a decline in exports, which negatively impacted GDP. Exports of goods and services fell by 0.4%, while imports increased by 1.7%, influenced by higher trade in vehicles, transport equipment, vegetable products, and mineral products.
This mixed economic performance highlights both growth opportunities and ongoing challenges as South Africa navigates its economic landscape in 2024.
