GDP grows by 0.5% in the third quarter

The trade, catering and accommodation industry increased by 1%, contributing 0.1 of a percentage point to GDP growth. Increased economic activities were reported for wholesale trade, retail trade, motor trade, accommodation and food and beverages.

The mining and quarrying industry increased by 2.3%, contributing 0.1 of a percentage point. The largest positive contributors were platinum group metals, manganese ore and coal.

The finance, real estate and business services industry increased by 0.3%, contributing 0.1 of a percentage point. Increased economic activities were reported for real estate activities and other business services.

General government services increased by 0.7%, contributing 0.1 of a percentage point. This was mainly owing to increased employment in national and provincial government and extra-budgetary institutions.

The personal services industry increased by 0.3%. Increased economic activities were reported for community services and other producers.

The transport, storage and communication industry increased by 0.5%. Increased economic activities were reported for air transport, transport support services and communication services.

The manufacturing industry increased by 0.3%. Four of the ten manufacturing divisions reported positive growth rates. The largest positive contributions were reported for the food and beverages division and the furniture and other manufacturing division.

The agriculture, forestry and fishing industry increased by 1.1%. This was primarily owing to increased economic activities reported in field crops, horticulture and animal products.

The electricity, gas and water industry decreased by 2.5%, contributing -0.1 of a percentage point. This was largely dowing to decreases in electricity production and consumption.

EXPENDITURE ON GDP
Household final consumption expenditure (HFCE) increased by 0.7%, contributing 0.5 of a percentage point to the total growth. Positive growth rates were reported for durable goods, non-durable goods and services.

The main positive contributors to the increase in HFCE were expenditures on transport (1.6% and contributing 0.2 of a percentage point), food and non-alcoholic beverages (0.9% and contributing 0.1 of a percentage point), housing, water, electricity, gas and other fuels (0.9% and contributing 0.1 of a percentage point) and furnishings, household equipment and maintenance (2% and contributing 0.1 of a percentage point).

The negative contributors were expenditures on the ‘other’ category and clothing and footwear.

Final consumption expenditure by general government increased by 0.3%, contributing 0.1 of a percentage point to the total growth. This was mainly driven by an increase in compensation of employees.

Gross fixed capital formation increased by 1.6%, contributing 0.2 of a percentage point to the total growth.

The main contributors to the increase were transport equipment (6.6% and contributing 0.7 of a percentage point), other assets (3.8% and contributing 0.4 of a percentage point), transfer costs (9.9% and contributing 0.2 of a percentage point), non-residential buildings (2.7% and contributing 0.2 of a percentage point) and machinery and other equipment (0.4% and contributing 0.2 of a percentage point).

There was a R25.7-billion buildup of inventories (seasonally adjusted and annualised value). Large increases in three industries, namely trade, catering and accommodation; manufacturing; and electricity, gas and water, contributed to the inventory build-up.

Net exports contributed negatively (-0.4 of a percentage point) to expenditure on GDP. Exports of goods and services increased by 0.7%, largely influenced by increased trade in vegetable products and mineral products.

Imports of goods and services increased by 2.2%, largely influenced by increased trade in machinery and electrical equipment; mineral products; textiles and textile articles; and animal and vegetable fats and oils.

BENCHMARKED AND REBASED NATIONAL ACCOUNTS
Stats SA points out that, in line with international best practice, it and the South African Reserve Bank, release benchmarked and rebased National Accounts estimates on a periodic basis.

The results of the previous exercise were published in August 2021, when the base year was changed from 2010 to 2015. The process of changing the base year to 2022 and incorporating periodic datasets is under way, and the results will be published in 2026. More details will be communicated closer to the time.