SOUTH AFRICAN ECONOMIC GREW 0.2 PCT IN THIRD QUARTER

South Africa’s Gross Domestic Product (GDP) grew by 0.2 per cent in the third quarter of 2016, compared with 0.3 per cent in the corresponding period last year.

Announcing this here Tuesday, the Deputy Director-General for Economic Statistics at Statistics South Africa (StatsSA), Joe de Beer, said: “The main contributors to the GDP growth rate were the mining and quarrying industry, finance, real estate and business services, and general government services.”

He told a media briefing that the mining and quarry sector expanded by 5.1 per cent, largely as a result of higher production in the mining of “other metal ores”, particularly iron ore.

The agriculture, forestry and fishing sector contracted by 0.3 percent, manufacturing by 3.2 per cent, electricity, gas and water by 2.9 per cent, and trade, catering and accommodation 2.1 per cent.

“Drought is still the largest contributor to the decline in the agriculture sector but we are seeing that the 2016 drought is not as bad as it was in 2015,” he said.

De Beer said the agriculture, forestry and fishing industry sector had been in decline for seven consecutive quarters.

In monetary terms, De Beer said the nominal GDP was estimated at 1,087 billion Rand (about 79.3 billion US dollars) for the 3rd quarter of 2016, or 18 billion Rand more than in the preceding quarter.

He said manufacturing expanded by 5.0 billion Rand to 130 billion Rand, while the transport and communication sector expanded by 5.0 billion Rand to 99 billion Rand. Mining expanded by 3.0 billion Rand to 79 billion Rand.

De Beer said expenditure on real domestic product grew by 0.5 percent in the third quarter.

The Household Final Consumption Expenditure increased by 2.6 per cent quarter-on-quarter, mainly as a result of expenditure on health services, which increased by 10 per cent and contributed 0.7 of a percentage point.

He said government final consumption expenditure increased by 2.1 per cent.

Net exports contributed negatively to total expenditure on GDP. Exports decreased by 26.4 per cent, mainly because of lower exports of precious metals and transport equipment, while imports decreased by 4.9 per cent on lower imports on machinery and electrical equipment.

Source: NAM NEWS NETWORK

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