By Thys Khiba
Johannesburg – The Statistics South Africa (Stats SA) has announced that the South African economy grew by 1,1% in the first quarter of 2021, which is between January and March, translating into an annualised growth rate of 4,6%.
Despite this growth, Stats SA confirmed that the South African economy is 2,7% smaller than it was in the first quarter of 2020.
The gross domestic product (GDP) release indicated that the finance, mining and trade industries were the main drivers of output on the production (supply) side of the economy. At least 8 out of the 10 industries recorded positive results.
“The finance, mining and trade industries were the main drivers of the output on the production (supply) side of the economy, while household spending and changes in inventories helped spur growth on the expenditure (demand) side,” the statement said.
The report shows that households final consumption expenditure increased at an annualised rate of 4,7% in the first quarter, driven largely by miscellaneous goods and services, clothing & footwear, and furnishings & household equipment.
Meanwhile, the mining industry is leading with a positive quarter with annualised growth of 18,1%. The industry is boosted by the production of platinum group metals, iron ore, gold and chromium.
“On the downside, miners in manganese ore, coal and diamonds recorded lower production figures in the first quarter,” the statement said.
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