South Africa’s gross domestic product (GDP) GDP increased by 0,6% in the fourth quarter of 2024. Growth was led by agriculture, finance and trade on the supply (production) side of the economy.
Gross Domestic Product (measured by production)
Three industries recorded positive growth in the fourth quarter of 2024:
Agriculture had the most significant positive impact on GDP growth on the supply side of the economy. Following a sharp decline in the third quarter, the industry rebounded by 17,2%, lifting GDP growth by 0,4 of a percentage point. This was mainly due to a rise in the production of field crops and animal products.
The finance, real estate & businesses services industry grew for an eighth consecutive quarter, with financial intermediation, real estate activities and other business services the largest positive contributors to growth. The industry increased by 1,1%, contributing 0,3 of a percentage point.
The trade, catering and accommodation industry expanded on the back of increased retail, wholesale and motor trade sales. This reflected positively on the demand side of the economy, with household consumption spending rising in the fourth quarter. The industry increased by 1,4%, contributing 0,2 of a percentage point.
Seven industries recorded negative growth:
Seven industries performed poorly, with manufacturing and transport, storage & communication the most significant negative contributors to growth.
Manufacturing was mainly pulled lower by weaker production levels in the metals & machinery and automotive divisions. The industry decreased by 0,6%, contributing -0,1 of a percentage point. Six of the ten manufacturing divisions reported negative growth rates. The largest negative contributions were reported for the basic iron and steel, non-ferrous metal products, metal products and machinery division and the motor vehicles, parts and accessories and other transport equipment division.
Transport, storage & communication recorded a fourth consecutive quarter of decline. The industry witnessed a pullback in land transport and transport support services. The industry decreased by 1,0%, contributing -0,1 of a percentage point.
Mining activity was down on weaker production levels for manganese ore, iron ore, gold, chromium ore, nickel and copper. Coal and platinum group metals were positive, but not enough to keep the industry above water. The industry decreased by 0,2%.
The construction industry decreased by 0,4%. Decreases were reported for residential and non-residential buildings.
The electricity, gas and water industry decreased by 1,4%. This was largely due to decreases in electricity production and consumption.
General government services decreased by 0,5%. This was mainly due to decreased employment in national and provincial government and extra-budgetary institutions.
The personal services industry decreased by 0,2%. Decreased economic activities were reported for health and education.
