South Africa’s GDP contracts 0.7% in the second quarter

Seven industries contracted in the second quarter, a presentation from the statistics agency showed. Picture: David Ritchie

Seven industries contracted in the second quarter, a presentation from the statistics agency showed. Picture: David Ritchie

Published Sep 6, 2022

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South Africa's gross domestic product (GDP) contracted 0.7% in the second quarter in quarter-on-quarter, seasonally adjusted and non-annualised terms, data from the statistics agency showed on Tuesday.

GDP grew 0.2% year-on-year unadjusted in the second quarter, Statistics South Africa said.

Economists had predicted 0.8% quarter-on-quarter contraction and 0.6% year-on-year growth.

The floods in the KwaZulu-Natal province and persistent power cuts weighed heavily on economic activity during the period, hampering businesses and disrupting operations.

Seven industries contracted in the second quarter, a presentation from the statistics agency showed.

Statistics South Africa said manufacturing fell 5.9% quarter-on-quarter, while the trade, catering and accommodation category contracted 1.5% and agriculture, forestry and fishing 7.7%. Mining and quarrying contracted 3.5%.

President Cyril Ramaphosa promised sweeping reforms to strengthen Africa's most advanced economy when he took office in 2018, but progress has been slow.

Reuters