According to the latest data released on Tuesday, South Africa managed to narrowly avert a recession as its economy exhibited modest growth in the first quarter. Despite facing severe power disruptions, the manufacturing and finance sectors demonstrated commendable resilience.
In the initial three months of 2023, Africa’s most industrialized economy experienced a quarter-on-quarter growth of 0.4%, along with a year-on-year growth of 0.2%. These figures indicate a measured expansion within the economy during that period.
The quarterly and annual growth rates reported were by the predictions made by economists in a recent poll. These anticipated figures align with the expectations and projections put forth by economic experts.
During the first quarter, eight out of ten industries monitored by Stats SA exhibited growth, with manufacturing and finance, real estate, and business services emerging as the primary drivers of positive contributions. This indicates a robust performance in these sectors, reinforcing their significance in fostering economic expansion during the given period.
Agriculture, forestry, and fishing had the most significant negative impact on overall growth, according to Statistician-General Risenga Maluleke. On the other hand, the food and drinks manufacturing sector displayed commendable performance, partially attributed to its comparatively lower electricity demands compared to other manufacturing segments. This resilience in the food and drinks manufacturing industry contributed positively to the overall economic performance during the period under review.
The manufacturing sector experienced a growth rate of 1.5% in the first quarter, while the finance, real estate, and business services sectors recorded a growth rate of 0.6%. Conversely, agriculture, forestry, and fishing contracted significantly by 12.3%, and the electricity, gas, and water sector declined by 1.0%. These figures highlight the divergent performance of various sectors, with manufacturing and finance displaying positive growth, while agriculture and the electricity sector faced notable setbacks during the period.