Gross Domestic Product drops by 3,2%

Finance, General News, National Government

Statistics South Africa’s General Risenga Maleluke gave an update on the Gross Domestic Product’s (GDP) performance in the first quarter of 2019, on Tuesday morning, in Pretoria.

The results covered sectors ranging from but not limited to Mining, Agriculture, Finance, Construction, Manufacturing, Trade, Transport and Government services. The country’s huge decline on GDP rate was alarming. The General said that we’ve witnessed similar declines of GDP in the year 2016, adding that the issue of load shedding had contributed in the contraction in manufacturing and mining sectors.

The statistics indicate that manufacturing industry and quarrying industry were the largest negative contributors to growth, with respect to the GDP of the first quarter of 2019, with manufacturing industry decreasing by 8,8 and contributing -1,1 percentage to GDP growth .

The mining and quarrying industry dropped by 10,8% and contributed -0,8 of a percentage point to GDP growth.
The agriculture,forestry and fishing industry had a drop of 13,2 and contributed -0,3 percentage point to GDP growth. The Finance sector had an increase of 1,1 in the first quarter .

Nominal GDP is being estimated at about R1,2 trillion for the first quarter of 2019 ,R56 billion less than in the previous fourth quarter of the year 2018.

Electricity, gas and water are up by R6 billion to R40 billion, with mining down by R19 billion to R81 billion and trade rising from R24 billion to R160 billion. All this shows that a negative growth was driven by a fall in the volume of electricity and water distribution.

Leave a Reply