Breaking Down the First Quater of South Africa’s GDP Decrease

South Africa’s gross domestic product (GDP) decreased by 0,1% in the first quarter of 2024. Six industries recorded negative growth between the fourth quarter of 2023 and the first quarter of 2024.

The construction industry decreased by 3,1% in the first quarter. Decreases were reported for residential buildings and construction works. Construction continued a downward trend, recording a fourth consecutive quarter of decline.The mining and quarrying industry decreased by 2,3% in the first quarter, mainly due to decreased economic activities reported for platinum group metals (PGMs), coal, gold and manganese ore.

The manufacturing industry decreased by 1,4% in the first quarter of 2024. Five of the ten manufacturing divisions reported negative growth rates. The motor vehicles, parts and accessories and other transport equipment division and the basic iron and steel, non-ferrous metal products, metal products and machinery division made the largest negative contributions to the decrease in the first quarter.

The transport, storage and communication industry decreased by 0,5% in the first quarter. Decreased economic activities were reported for land transport. The electricity, gas and water industry decreased by 0,4%, largely due to decreases in electricity production and consumption, and water consumption.

General government services decreased by 0,1% in the first quarter, mainly due to decreased employment in the provincial government.

The following industries recorded positive growth rates:

The agriculture, forestry and fishing industry increased by 13,5% in the first quarter of 2024. This was primarily due to increased economic activities reported for horticulture products. Other positive contributors include maize and animal products.

The trade, catering and accommodation industry increased by 0,1% in the first quarter. Trade, catering & accommodation was marginally up on stronger wholesale trade sales, tourist accommodation, and economic activity in the restaurant, catering and fast-food sectors.

The finance, real estate and business services industry increased by 0,1%. Increased economic activities were reported for financial intermediation, insurance and pension funding and real estate activities.

The personal services industry increased by 0,1% in the first quarter. Increased economic activities were reported for health and education.

Contributions to Growth in GDP, Q1 2024 (% points)