By Simon Nare
The government has welcomed the news that the gross domestic product expanded by 0.6% in the fourth quarter of 2024
According to Stats SA, the growth was driven by agriculture, finance and trade sectors on the production side.
Household spending led to growth on the expenditure side.
This follows a contraction of 0.1% in the third quarter.
Government Communication and Information System acting director-general Terry Vandayar said that together with various stakeholders, the government would continue to build on this momentum to drive greater economic resilience.
“The latest GDP data is encouraging and signals a welcome recovery, especially because one of government’s immediate priorities is to ensure positive economic growth that will encourage business development and provide more opportunities for employment, especially for women and the youth,” Vandayar said on Tuesday.
He added that the government has put in place a broad range of programmes and policies to support the growth of small businesses, develop infrastructure to foster economic growth and encourage investment from inside and outside of South Africa.
Stats SA said agriculture had the most significant positive impact on the GDP on the supply side of the economy.
“Following a sharp decline in the third quarter, the industry rebounded by 17.2%, lifting the GDP growth by 0.4% of a percentage point. This was mainly due to a rise in the production of field crops and animal products.
“The finance, real estate and businesses services industry grew for an eighth consecutive quarter, with financial intermediation, real estate activities and other business services the largest positive contributors to growth,” said Stats SA.
It said the trade industry expanded on the back of increased retail, wholesale and motor trade sales. This reflected positively on the demand side of the economy, with household consumption spending rising in the fourth quarter.
Stats SA pointed out that seven industries performed poorly, with manufacturing, transport, storage and communication, the most significant negative contributors to growth. It said manufacturing was mainly pulled lower by weaker production levels in the metals and machinery, and automotive divisions.
“Transport, storage and communication recorded a fourth consecutive quarter of decline. The industry witnessed a pullback in land transport and transport support services.
“Mining activity was down on weaker production levels for manganese ore, iron ore, gold, chromium ore, nickel and copper. Coal and platinum group metals were positive, but not enough to keep the industry above water,” it said.
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