South Africa GDP Annual Growth Slows to 0.4% in Q2

The South African economy expanded 0.4 percent year-on-year in the second quarter of 2018, slowing from a 0.8 percent growth in the previous period and below market expectations of a 1 percent expansion. It was the weakest growth rate since the first quarter of 2016 when the economy contracted 0.3 percent, as production declined mainly for in agriculture, forestry and fishing activities.

Slower growth rates were recorded for trade, catering and accommodation (0.1 percent compared to 0.3 percent in Q1); finance, real estate and business services (1.8 percent compared to 2.1 percent); personal services (1.0 percent compared to 1.3 percent) while electricity, gas and water registered no growth (compared to 1.3 percent in Q1). Also, output dropped for transport, storage and communication (-0.2 percent compared to 1.8 percent) and fell further for agriculture (-5.8 percent compared to 3.2 percent) and construction (-1.1 percent compared to -0.7 percent).

Meanwhile, higher growth rates were seen in general government services (0.8 percent compared to 0.5 percent) and production of mining and quarrying declined less (-0.5 percent compared to -1.2 percent).

On a seasonally adjusted quarterly basis, the economy contracted 0.7 percent on quarter in the three months to June of 2018, following a 2.6 percent fall in the prior period and missing market consensus of a 0.6 percent growth. It was the second consecutive period of contraction, as the main contributors to the drop agriculture, transport and trade. 

South Africa GDP Annual Growth Slows to 0.4% in Q2

Statistics South Africa | Stefanie Moya |
9/4/2018 10:31:00 AM