By Akani Nkuna
THE government has welcomed the country’s economic growth as reflected in the Gross Domestic Product (GDP) figures released by Stats South Africa (Stats SA) on Tuesday.
Following a stagnant growth of 0.0% in the first quarter, the GDP increased by 0.4% in the second quarter of 2024.
Acting government spokesperson Nomonde Mnukwa said that “the second quarter’s economic growth is a clear indication that South Africa’s economy is on a solid path of recovery”.
Real GDP on expenditure also experienced an increase from 0.1% in the first quarter to 0.5% in the second quarter. The growth has been attributed to household consumption which demonstrates confidence and spending power of South African households.
The production sector comprising real estate, finance and businesses also played a significant role in the overall growth of GPD, contributing 0.3%. There was growth of 3.1% in the manufacturing sector as a result of increased electricity generation and water distribution.
The stable supply of electricity, which was uncharacteristic in the first quarter, has played a crucial role in revitalising sectors which are critical for economic growth.
“This positive trajectory also speaks to the effectiveness of the measures that have been implemented to support recovery and growth,” Mnukwa said.
However, despite the signs of economic growth, the government has acknowledged there was room for improvement in certain areas, including agriculture, mining, forestry and fishing.
Moreover, it assured that work was being done to rectify the persisting challenges to foster an environment where sustainable development could be achieved.
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