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Stats SA: South Africa’s GDP grew by 3.1% in Q2 of 2019

South Africa’s economy gained a bit of traction in Q2 of 2019, Stats SA revealed.

Rand hit new all-time low COVID-19

Photo: Adobe Stock

Statistics South Africa announced a bit of good news about the value of our growth domestic product (GDP), on Tuesday, in what’s been a cloudy and grim news week thus far.

What was South Africa’s GDP in Q1:2019?

This positive news, however, does not suggest that the value of South Africa’s GDP has grown since the turn of the year. It only means that, we have stabilised conditions from the drop that was experienced in the first quarter (Q1) of the year.

Previously, Stats SA had revealed that the GDP, in Q1:2019, had dropped by 3.1% and stood at R1.20-trillion, after a sluggish start to the year.

However, the stats authority indicated that positive contributions from a number of sectors drove up the GDP to a nominal standing of R.126-trillion by the end of Q2:2019, totalling a 3.1% growth that basically puts us exactly where we were at the beginning of the year.

The contributing factors to economic growth in Q2:2019

A number of factors contributed to the improved performance of our economy in the observed period. For one, the mining industry was boosted by a record 14.4% growth spurt, something that has not been seen since the second quarter of 2016.

Secondary sectors, such as Manufacturing and Electricity experienced short growth spurts too, which ultimately contributed to the positive outcomes of South Africa’s GDP standing.

Industries in crisis

On a more concerning note, the stats authority noted that the following industries suffered losses in Q2:2019.

  • Transport: -0.3%
  • Construction: -1.6%
  • Agriculture: -4.2%

Agriculture’s dismal performance will surely be an area of concern for the government since the sector is one of the largest contributors to South Africa’s GDP.

South Africa GDP: Sectors that performed well in Q2:2019

The economy’s push towards stability was assisted by the majority of our industries, that despite low confidence from the international community, made positive contributions.

The Secondary sector collectively contributed 1.5% towards the growth of the GDP, with Manufacturing accounting for 2.1% of the rise.

The financial sector, as well as real estate and business services, which is, in essence, the largest industry in South Africa, grew by 4.1% and that growth can be attributed to the positive performance of the banking and insurance sectors.