South Africa's economy

The year-on-year GDP growth of 4.9% is the best figure posted by SA since 2008 -Photo: Unsplash

Looking up! There’s a rare bit of GOOD news for South Africa’s economy…

Although the economy remains smaller than it was before the pandemic, South Africa now seems to be taking big steps forward.

South Africa's economy

The year-on-year GDP growth of 4.9% is the best figure posted by SA since 2008 -Photo: Unsplash

You love to see it. South Africa’s economy has grown on three frontiers, as the latest data released by StatsSA shows that things are finally looking up for Mzansi.

Good news for South Africa’s economy…

There are still a myriad of societal and economic problems threatening the this country’s finances, but today’s news can be seen as a positive step in the right direction. The economy has grown on a quarterly, annual, and year-by-year basis – here are those all-important figures:

  • The economy grew by 1.2% from the last recorded quarter.
  • The annual comparison of Q4 shows a 1.7% rise in 2021.
  • However, the year-by-year analysis shows that SA’s GDP expanded by 4.9% in 2021.
  • This is the best return in 14 years, and shows Mzansi is recovering steadily from the impact of lockdowns.
  • However, the economy is still 1.8% smaller than it was in the first quarter of 2020.

GDP increase ‘on all three fronts’

Trade, manufacturing and agriculture all experienced a productive previous quarter, and exports also soared. Despite the threat posed by the Omicron variant in 2021, South Africa stayed on its steady course to recovery – largely thanks to the government’s decision not to bring in any additional measures to combat the fourth wave.

“The fourth quarter was upbeat, with personal services, trade, manufacturing and agriculture the key drivers of growth. An increase in demand for goods and services drove up the expenditure side of the economy, with exports and household expenditure the most significant contributors to growth.”

“Trade activity increased by 2.9% as lockdown restrictions eased, with positive results from retail; motor trade; tourist accommodation; and restaurants, fast-food and catering. Economic activity in the wholesale sector, however, edged slightly lower. Exports increased by 8.5% in the fourth quarter.”