PHUTI MOSOMANE
After rallying in the third quarter of 2022, South African gross domestic product (GDP) declined by 1,3% in the fourth quarter (October‒December), Stats SA announced on Tuesday.
Growth was dragged lower mainly by finance, trade, mining, agriculture, manufacturing and general government services.
Finance and trade the biggest drags on growth
Seven of the ten industries contracted in the fourth quarter. The finance, real estate and business services industry shrank by 2,3%. This was on the back of lower economic activity in financial intermediation, insurance and pension funding and auxiliary activities. As the finance, real estate and business services industry is the largest in the South African economy, the 2,3% decrease was the biggest factor behind the decline in GDP, subtracting 0,6 of a percentage point from GDP growth (Figure 1).
The trade, catering and accommodation industry was the second largest negative contributor to growth, recording a contraction of 2,1%.
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