GDP rebounds after lockdown restrictions eased
SOUTH Africa’s gross domestic product (GDP) rebounded significantly and increased at an annualised rate of 66.1 percent in the third quarter, largely as a result of the easing of Covid-19 lockdown restrictions.
This was the strongest pace of expansion since at least 1993 and beat market expectations of 52.6 percent recovery, but it was from a low base following a record 51.7 percent slump in the second quarter.
Without annualising, the quarter-on-quarter seasonally adjusted growth rate was 13.5 percent.
Statistics South Africa (Stats SA) said today that manufacturing, trade and mining were the main drivers of growth.
The manufacturing industry increased at a rate of 210.2 percent in the third quarter as all q0 manufacturing divisions reported positive growth rates.
The four divisions with the largest contributions to the increase were basic iron and steel, non-ferrous metal products, metal products and machinery; petroleum, chemical products, rubber and plastic products; transport equipment; and food and beverages.
The mining and quarrying industry rose by 288.3 percent largely on account of the easing of local and global lockdown restrictions.
StatsSA said higher production was mainly due to increased activities in the production of platinum group metals (PGMs), iron ore, gold, manganese ore and diamonds.
The trade, catering and accommodation industry experienced a 137 percent jump, but the total value added for the industry in the third quarter remained below its first quarter level.
The transport, storage and communication industry increased at a rate of 79.3 percent as a result of increases in land transport, air transport, transport support services and communication services.
Finance, real estate and business services rose by 16.5 percent due to an increase in economic activity for financial intermediation, insurance and pension funding and other business services.
The construction industry increased by 71.1 percent in the third quarter.
StatsSA said expenditure on real
GDP increased at an annualised rate of 67.6 percent in the quarter as household consumption, exports and gross fixed capital formation recovered.