Home Alex Pioneer GDP falls by 2.0%

GDP falls by 2.0%

681
41

The South African Gross Domestic Product (GDP) decreased by 2.0% in the first quarter of 2020, Statistics SA has revealed.

Releasing the data on Tuesday, Stats SA said the contraction was due to decreases in several key sectors.

“The mining and quarrying industry decreased by 21.5% and contributed 1.7 percentage points to GDP growth. Decreased production was reported for iron ore, manganese ore, other metallic minerals and chromium,” the report reveals.

The manufacturing industry during this period contracted by 8.5%.

“Seven of the 10 manufacturing divisions reported negative growth rates in the first quarter. The divisions that made the largest contributions to the decrease were petroleum, chemical products, rubber and plastic products; basic iron and steel, non-ferrous metal products, metal products and machinery, and motor vehicles, parts and accessories and other transport equipment,” Stats SA said.

The electricity, gas and water industry contracted by 5.6% in the first quarter, largely due to decreases in electricity distribution and water consumption.

The construction industry decreased by 4.7%. Decreases were reported for residential buildings, non-residential buildings and construction works.

The agriculture, forestry and fishing industry increased by 27.8% and contributed 0.5 of a percentage point to GDP growth. The increase was mainly due to increases in the production of field crops, horticultural products and animal products.

Finance, real estate and business services increased by 3.7% in the first quarter. Increased economic activity was reported for financial intermediation, insurance and pension funding, auxiliary activities, and other business services.

General government services increased by 1.0%, mainly attributed to increased employment in provincial government and higher education institutions.

Expenditure on GDP

Expenditure on real GDP fell by 2.3% in the first quarter of 2020.

During this period, household final consumption expenditure increased by 0.7% in the first quarter, contributing 0.4 of a percentage point to total growth.

“The main positive contributors to growth in HFCE [household final consumption expenditure] were expenditure on food and non-alcoholic beverages (4.3% and contributing 0.8 of a percentage point), furnishings, household equipment, maintenance (3.2% and contributing 0.3 of a percentage point) and housing and utilities (1.7% and contributing 0.2 of a percentage point, respectively),” reads the report.

Expenditure on transport and clothing and footwear decreased and contributed negatively to growth in HFCE.

Final consumption expenditure by general government increased by 1.1%. Increases in employment and spending on goods and services were reported in the first quarter.

Gross fixed capital formation decreased by 20.5%. The main contributors to the decrease were machinery and other equipment, transport equipment and other assets. Weak imports of machinery and other equipment and transport equipment contributed to the decrease in gross fixed capital formation.

There was a R67.3 billion drawdown of inventories in the first quarter of 2020. Large decreases were reported for the mining, manufacturing and trade industries.

41 COMMENTS

  1. With havin so much content do you ever run into any problems of plagorism or copyright violation? My site has a lot of
    completely unique content I’ve either created myself or outsourced but
    it seems a lot of it is popping it up all over the web without my permission. Do you know any techniques to help reduce content
    from being stolen? I’d definitely appreciate it. games ps4 allenferguson games ps4

  2. Hello! This is kind of off topic but I need some advice from an established blog.
    Is it difficult to set up your own blog? I’m not very techincal but I can figure things out pretty fast.
    I’m thinking about setting up my own but I’m not sure where to start.
    Do you have any points or suggestions? Many thanks
    games ps4 allenferguson games ps4

  3. Have you ever thought about adding a little bit more than just your articles?
    I mean, what you say is important and all. But think about
    if you added some great visuals or videos to give your posts more, “pop”!
    Your content is excellent but with pics and
    video clips, this site could certainly be one of the
    very best in its field. Wonderful blog!

  4. Hi, I think your site might be having browser compatibility issues.
    When I look at your blog in Opera, it looks fine but when opening in Internet Explorer, it has some overlapping.

    I just wanted to give you a quick heads up! Other then that,
    fantastic blog!

  5. After looking over a few of the blog articles on your blog, I really like your technique
    of blogging. I saved as a favorite it to my bookmark webpage
    list and will be checking back in the near future. Please
    check out my website too and let me know how you feel.

  6. I feel this is among the most important information for me.
    And i’m happy studying your article. But should statement on few normal issues, The website style is ideal, the articles is actually excellent :
    D. Just right task, cheers

  7. scoliosis
    of course like your web-site however you have to check the spelling on several of your posts.

    Several of them are rife with spelling issues
    and I in finding it very troublesome to tell the truth then again I will surely come back
    again. scoliosis

  8. My developer is trying to convince me to move to .net from
    PHP. I have always disliked the idea because of the costs.
    But he’s tryiong none the less. I’ve been using WordPress on numerous websites for about a year and am anxious about switching to another platform.
    I have heard good things about blogengine.net.
    Is there a way I can import all my wordpress posts into it?
    Any help would be really appreciated!