Government welcomes GDP growth in Q3
Figures released by Statistics South Africa show that the country’s gross domestic product increased by 1,6% in the third quarter, July-September 2022, from a contraction of 0,7% in the second quarter. Government welcomes the growth of economic activity which was driven by eight industries.
It is particularly pleasing to note that seven of the ten manufacturing divisions reported positive growth rates in the third quarter. The transport, storage and communication industry increased by 3,7%. Motor vehicles, parts and accessories and other transport equipment division made the largest contribution to the increase in the third quarter. The food and beverages division and the basic iron and steel, non-ferrous metal products, metal products and machinery division also made significant contributions to growth. It is also noted that the agriculture, forestry and fishing industry increased and contributed 0,5 of a percentage point to GDP growth. Increased economic activities were reported for field crops and horticulture products. It is also noted that finance, real estate and business services increased at a rate of 1,9%.
Furthermore, government welcomes the net exports positive contribution to growth. Exports of goods and services increased by 4,2%, largely influenced by increased trade in mineral products; base metals and articles of base metals; vegetable products; and paper products. Imports of goods and services increased by 0,6%, driven largely by increases in mineral products and animal and vegetable fats and oils.
Minister in the Presidency, Mondli Gungubele, said: “The statistics show us that our economy is not stagnant but rather moving towards an upward trajectory. Despite inflationary pressures and the high cost of living, we are emerging resilient, and our fiscal position is improving. The growth exceeded market expectations which was envisioned at 0.4%-0.7%. Notably, Stats SA’s data shows that South Africa’s economy in the third quarter was larger than it was before the Covid-19 pandemic, which is positive and welcomed news for economic recovery following two years of lockdown. Implementation of the country’s Economic Reconstruction and Recovery Programme continues earnestly. Let us all play our part, grow our economy, leaving no one behind.”
Source: Government of South Africa