By: Natasha Archary
South Africa’s Gross Domestic Product (GDP) increased by 0.4% in the 1st quarter of 2023, ensuring the country avoids a technical recession.
Joe de Beer, Deputy Director General for Economic Statistics at StatsSA joined Nastassia Arendse on Kaya Biz to break down what this means.
According to de Beer, there were two sectors which contributed to the lower than expected GDP increase, which were electricity brought on by the Eskom loadshedding crisis, as well as agriculture.
StatsSA released the GDP data on Tuesday, 06 June, showing a marginal growth in the economy which made a significant downturn in expert predictions for a technical recession.
In March, the 4th quarter GDP numbers showed a decline by 1.3%.
Monthly surveys and statistics reporting that were conducted by StatsSA gets collated to form the quarterly data, which is updated and released to the public.
“The manufacturing divisions reported increased by 1.5% in the 1st quarter, contributing 0.2 of a percentage point to GDP growth.
Four out of ten manufacturing divisions reported positive growth rates in the 1st quarter, with food and beverages making the largest contribution to the increase.
Petroleum, chemical products, rubber and plastic products division also made a significant contribution to growth in the industry.”
Joe de Beer, DDG for Economic Statistics at StatsSA
De Beer said large increases in mining and quarrying, trade, catering and accommodation, as well as personal services, all contributed to this build-up.
Additionally, exports of goods and services increased by 4.1%. This was, according to de Beer influenced by increased trade in base metals, vegetable products, prepared food items, beverages, tobacco, machinery and electrical equipment.
Listen to the conversation on Kaya Biz:
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