IN expenditure terms, a recovery in investment and expanded household spending boosted South Africa’s gross domestic product (GDP) growth in the first quarter this year, according to a report issued by economic research firm Trade and Industrial Policy Strategies (Tips) on June 10.
Gross fixed capital formation rose by 3.6% for the period, while private investment climbed rapidly and general government investment reversed its downward trend. Household consumption, mostly by the richest 20% of households, rose by 1.4%, while government consumption increased by 1%.
Overall, Tips reported, investment remained 6% below pre-pandemic levels, despite some recovery since the middle of last year. Investment rose by 4.1% in the first quarter this year, with a 4.9% increase in government investment and 4.1% in private investment, which is far larger.
However, State-owned corporations cut their investment by 1.1%.
In mining, profits fell in sync with global prices but were still much higher
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