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SouthAfrica economy grew by 1.3% in Q1 2015
May 26, 2015, 10:20 am

The manufacturing sector, which accounts for more than 15 per cent of South Africa’s national GDP, shrank by an annualized 2.4 per cent in the first quarter [Xinhua]

The manufacturing sector, which accounts for more than 15 per cent of South Africa’s national GDP, shrank by an annualized 2.4 per cent in the first quarter [Xinhua]

Statistics South Africa on Tuesday released disappointing growth data for Africa’s most advanced economy.

South Africa’s GDP grew by an annualised 1.3 per cent quarter-on-quarter in the first three months of 2015.

The South African economy grew by 4.1 per cent in the last quarter of 2014.

The unadjusted real GDP at market prices increased by 2.1 per cent year-on-year.

The slump had much to do with manufacturing and agriculture losses.

The manufacturing sector, which accounts for more than 15 per cent of South Africa’s national GDP, shrank by an annualized 2.4 per cent in the first quarter, hamstrung largely by general disrepair, which hurt production capacity.

Nominal GDP estimated at R965 billion for the first quarter of 2015.

South Africa’s agriculture sector also shrank by a whopping 16.6 per cent in the same period.

The troubled mining sector grew by an annualized 10.2 per cent in Q1 2015 and was a main contributor to GDP growth rate during the period.

The resignation of thousands of civil servants from their posts in 2014 and early 2015 made a heavy dent in the country’s GDP growth rate in the first quarter, said the statistics body.

“If government services had not contracted by 0,8% but had instead expanded by 2,0% (quarter-on-quarter and annualised), the growth rate for the entire economy would have been 1,8% in the first quarter of 2015,” said a statement from Statistics SA.

South Africa is struggling with falling commodity prices, recurring power outages and a weakening currency. But, growth in exports has not grown significantly due to low international demand and a wobbling eurozone.

TBP

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