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SA economy grows by 1.2% in second quarter

by centra
Statistician-General Risenga Maluleke

South Africa’s Gross Domestic Product (GDP) increased by 1.2% in the second quarter of 2021, Statistician-General Risenga Maluleke said.

Maluleke was releasing results of the 2021 second quarter GDP during a press briefing on Tuesday.

During this period – the months of April, May and June – transport, storage and the communication industry increased by 6.9%, making the largest contribution to GDP growth – 0.5 percentage points.

The statistics agency said increased economic activity was reported for land transport and communication services.

“The personal services industry increased by 2.5% and contributed 0.4 of a percentage point to GDP growth. Increases were reported for community services and other producers.

“The trade, catering and accommodation industry increased by 2.2% and contributed 0.3 of a percentage point to GDP growth. Increased economic activity was reported in wholesale, retail and motor trade, and there was increased spending on catering and accommodation services,” said Statistics South Africa (Stats SA).

stats sa logo
stats sa logo

During the three months, the agriculture, forestry and fishing industry increased by 6.2% and contributed 0.2 of a percentage point to GDP growth.

Maluleke said the increase was mainly due to increased production of field crops, horticulture and animal products.

“The mining and quarrying industry increased by 1.9% and contributed 0.1 of a percentage point to GDP growth. Increased production was reported for platinum group metals (PGMs), gold and coal. Unadjusted real GDP for the first six months of 2021 increased by 7.5% compared with the first six months of 2020.”

In the second quarter of the year, Maluleke revealed that expenditure on real GDP increased by 1.2%.

“Household final consumption expenditure increased by 0.5% in the second quarter, contributing 0.3 of a percentage point to total growth.

The highest growth rates and largest contributors were seen in durable and non-durable goods.

“The main positive contributors to growth in household final consumption expenditure (HFCE) were expenditures on transport (2.7% and contributing 0.4 of a percentage point); health (2.5% and contributing 0.2 of a percentage point); food and non-alcoholic beverages (1.7% and contributing 0.2 of a percentage point); restaurants (2.4% and contributing 0.1 of a percentage point); communication (1.6% and contributing 0.1 of a percentage point); and clothing and footwear (1.1% and contributing 0.1 of a percentage point).”

“A negative contribution to growth in HFCE was reported for expenditures in the ‘other’ category, decreasing by 3.8% and contributing -0.5 of a percentage point, mainly because of lower spending on insurance services in the second quarter.”

Stats SA said final consumption expenditure by general government decreased by 0.1% in the quarter.

Decreases in compensation of employees and spending on goods and services were reported in the second quarter. Gross fixed capital formation increased by 0.9%.

The agency said the main contributors to the increase were machinery and equipment (1.8% and contributing 0.7 of a percentage point), ‘other’ assets5 (6.4% and contributing 0.7 of a percentage point) and transport equipment (1.1% and contributing 0.1 of a percentage point). “There was a R21.7 billion drawdown of inventories in the second quarter of 2021 (seasonally adjusted and annualised).

“Large decreases in electricity and mining contributed to the inventory drawdowns experienced in the second quarter of 2021,” said the agency.

It added that net exports contributed positively to growth in expenditure on GDP in the second quarter, with the exports of goods and services having increased by 4.0%.

This, said the agency, was largely influenced by increased trade in mineral products; pearls, precious and semi-precious stones; precious metals; and vehicles and other transport equipment.

“Imports of goods and services increased by 0.4%, driven largely by increases in mineral products; base metals and articles of base metals; and animal and vegetable fats and oils,” it said. SAnews


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