S. Africa economy grows in Q2 ’24

South Africa’s economy grew by 0.4 per cent in the second quarter of 2024, driven by key sectors such as finance, manufacturing, trade, and electricity, gas, and water supply. The finance, real estate, and business services industries contributed the most, adding 0.3 percentage points to GDP growth.

Manufacturing rebounded with a 1.1 per cent increase, while trade rose by 1.2 per cent due to robust wholesale and retail activity. The electricity, gas and water supply industry surged by 3.1 per cent, marking its best performance since 2008, supported by increased electricity generation and water distribution amid a period without load shedding.

On the demand side, household consumption grew by 1.4 per cent, bolstered by rising consumer confidence and increased spending across most product categories, particularly insurance.

Government consumption also contributed positively, while imports rose by 1.7 per cent. Despite a R9.6 billion inventory build-up, gross fixed capital formation declined by 1.4 per cent, marking the fourth consecutive quarterly drop due to lower investments in various sectors. Exports fell due to weaker trade in several product categories, including mineral and vegetable products.

Attribution: Statistics South Africa

Subediting: M. S. Salama