Lerato Mbhiza
Economic growth has declined by 0,2% in the third quarter, Statistics South Africa announced on Tuesday as load shedding and a collapsing transport sector forced many mines to downscale and shed jobs.
This follows a 0.4% rise in the first quarter and a 0.6% in the second quarter.
Chief Director for National Accounts at Stats SA, Bokang Vumbukani Lepolesa, said agriculture, forestry and fishing industries decreased by 9,6%, contributing -0,3% to the negative GDP growth.
This was primarily due to decreased economic activities reported for field crops, animal products and horticulture products. The manufacturing industry decreased by 1,3% in the third quarter, contributing -0,1 of a percentage point. Eight of the ten manufacturing divisions reported negative growth rates in the third quarter.
The food, beverages and tobacco division made the largest contribution to the decrease in the third quarter.
“The petroleum, chemical products, rubber and plastic products division and the basic iron and steel, non-ferrous metal products, metal products and machinery division also made significant contributions to the contraction in this industry,” she said.
Vumbukani Lepolesa said the construction industry also recorded a 2,8% decline in the third quarter, contributing -0,1%.
“Decreases were reported for residential buildings, non-residential buildings and construction works. The mining and quarrying industry decreased by 1,1% in the third quarter.
“Decreased economic activities were reported for platinum group metals (PGMs), gold, other metallic minerals and manganese ore. The trade, catering and accommodation industry decreased by 0,2% in the third quarter.
“Decreased economic activities were reported for wholesale trade, motor trade and food and beverages,” added Lepolesa.
Investments in machinery and equipment shrank by 3,2% in the third quarter, contributing negatively to gross fixed capital formation.
This follows a sharp rise in investments in imported machinery and equipment in the second quarter, which included products related to renewable energy.
The country invested R303 billion in machinery and equipment in the second quarter, up from R273 billion in the first quarter. This spike was short-lived, with investments in machinery and equipment pulling back in the third quarter to R293 billion.
“The pull-back in demand for machinery and equipment contributed to the 8,6% decline in imports. There were also decreases in imports of chemical products, resins & plastics, base metals & articles of base metals, vegetable products and vehicles & transport equipment” said Stats SA .
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