Johannesburg: South Africa’s gross domestic product (GDP) increased by 0.6% in the fourth quarter of 2024, following a decrease of 0.1% in the third quarter of 2024.
According to South African Government News Agency, this growth is attributed primarily to a 17.2% increase in the agriculture, forestry, and fishing industry, which contributed 0.4 of a percentage point to the positive GDP growth. The growth in this sector was mainly driven by increased economic activities reported for field crops and animal products. Additionally, the finance, real estate, and business services industry rose by 1.1%, contributing 0.3 of a percentage point, with increased economic activities noted in financial intermediation, real estate activities, and other business services.
The trade, catering, and accommodation industry also saw a rise of 1.4%, contributing 0.2 of a percentage point. This increase was fueled by heightened economic activities in wholesale trade, retail trade, and motor trade. Conversely, the transport, storage, and communication industry decreased by 1.0%, contributing -0.1 of a percentage point, primarily due to decreased activities in land transport and transport support services.
The manufacturing industry experienced a decrease of 0.6%, contributing -0.1 of a percentage point, with six out of ten manufacturing divisions reporting negative growth rates. Significant negative contributions were observed in the basic iron and steel, non-ferrous metal products, metal products and machinery, and the motor vehicles, parts and accessories, and other transport equipment divisions.
General government services decreased by 0.5%, mainly due to decreased employment in national and provincial government and extra-budgetary institutions. The electricity, gas, and water industry saw a decrease of 1.4%, largely due to declines in electricity production and consumption. The mining and quarrying industry decreased by 0.2%, with reduced economic activities reported for manganese ore and iron ore.
Regarding expenditure on real GDP, it increased by 0.6% in the fourth quarter, following a decrease of 0.1% in the third quarter. Household final consumption expenditure (HFCE) rose by 1.0%, contributing 0.6 of a percentage point to the total growth. Positive growth rates were reported for semi-durable, durable, and non-durable goods.
The main positive contributors to the HFCE increase were expenditures on clothing and footwear, food and non-alcoholic beverages, recreation and culture, furnishings, household equipment and maintenance, health, and alcoholic beverages, tobacco, and narcotics. Negative contributors were expenditures on transport and restaurants and hotels.
Final consumption expenditure by the general government decreased by 0.8%, contributing -0.2 of a percentage point to total growth, driven by decreases in goods and services purchases and employee compensation. Gross fixed capital formation decreased by 0.7%, contributing -0.1 of a percentage point, with significant negative contributions from residential buildings, machinery and other equipment, and non-residential buildings.
There was a R16.4 billion drawdown of inventories, attributed to large decreases in the mining and trade, catering, and accommodation industries. Net exports made a neutral contribution to GDP expenditure, with exports of goods and services increasing by 2.1%, largely due to trade in pearls, precious stones, metals, and chemical products. Imports of goods and services rose by 2.0%, driven by trade in vehicles and transport equipment, vegetable products, and machinery and electrical equipment.