SOUTH Africa’s economy declined more than expected in the fourth quarter of 2022.
After rallying in the third quarter of 2022, South African gross domestic product (GDP) declined by 1.3% in the fourth quarter (October‒December). Economists anticipated a decline of 0.4%.
According to Stats SA, growth was dragged lower mainly by finance, trade, mining, agriculture, manufacturing and general government services.
Seven of the ten industries contracted in the fourth quarter. The finance, real estate & business services industry shrank by 2.3%. This was on the back of lower economic activity in financial intermediation, insurance & pension funding and auxiliary activities.
As the finance, real estate & 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.
The trade, catering & accommodation industry was the second largest negative contributor to growth,
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