JOHANNESBURG – Stats SA has announced that economic growth was 0.4% in the first quarter of the year.
It said that improved manufacturing output and the finance industry contributed to the country’s economic rebound.
While the figure came in higher than expected, it’s believed that economic growth could have come in stronger without the intensifying power cuts which continue to drag down growth in some sectors.
MANUFACTURING AND FINANCE DRIVE SA’S ECONOMIC GROWTH
Stats SA said the manufacturing and finance industries are the main drivers for economic growth in the first quarter of 2023 after the gross domestic product (GDP) saw an upward trajectory.
GDP came in at 0.4% higher than some predictions.
In the previous quarter, the economy had contracted significantly sparking fears that the country would slip into a technical recession in the first three months of this year.
But the latest data shows the economy narrowly dodging further economic disaster.
The total value of all goods and services produced in the first quarter of the year is estimated at R1.65 trillion.
While the economy looks to be rebounding to the pre-COVID levels, it still remains below the peak seen in the 3rd quarter of last year.
Stats SA said eight out of 10 industries recorded growth in the first three months of the year.
Manufacturing, as well as finance, real estate and business services were the largest positive contributors.
Despite a more positive outlook, record power cuts continue to put a damper on some sectors of the economy including agriculture – which was among the biggest drags on economic growth.
The agricultural sector was especially weighed down by a decline in the production of field crops and animal products.
Source : EWN
