The gross domestic product (GDP) for South Africa decreased by 0.1% in the first quarter (January to March) of 2024 after 0.3% increase in the fourth quarter of 2023, according to data from StatsSA.
StatsSA said that weaker manufacturing, mining and construction drove much of the downward momentum on the production side of the economy, while the expenditure side witnessed a decline across all components.
According to StatsSA, six of the ten industries on the production side of the economy performed poorly in the first quarter of 2024.
StatsSA findings showed that the manufacturing industry decreased by 1.4% in the first quarter of 2024 with five of the ten manufacturing divisions reporting negative growth rates in Q1 2024.
The automotive sector, the largest negative contributor to the poor performance of the manufacturing industry, was pulled lower by weaker demand for new vehicles, transport parts and accessories.
There was also a 2.3% drop in the mining and quarrying industry in the first quarter as decreased economic activities were reported for platinum group metals (PGMs), coal, gold and manganese ore.
The construction industry had a 3.1% drop in the first quarter as decreases in residential buildings and construction works was reported.
However, the agriculture, forestry and fishing industry increased by 13,5% in Q12024, contributing 0.3% of a percentage point.
According to StatsSA, agriculture was the biggest positive contributor in Q12024 spurred by a resilient horticulture sector that recorded a rise in the production of fruit as well as maize and animal products.
IOL Business