South African economy on decline in Q3

JOHANNESBURG, Dec. 7 — South Africa’s gross domestic product (GDP) shrank 1.5 percent in the third quarter of 2021 on a quarter-on-quarter seasonally adjudged basis, said Statistics South Africa (Stats SA) Tuesday.
“Six industries recorded negative growth between the second quarter of 2021 and the third quarter of 2021. The largest negative contributors to growth in GDP in the third quarter were the trade, manufacturing, and agriculture industries. The trade industry decreased by 5.5 percent and contributed -0.7 of a percentage point to GDP growth,” said Statistician-General Risenga Maluleke.
The manufacturing industry decreased 4.2 percent and contributed -0.5 of a percentage point to GDP growth, while the agriculture industry declined 13.6 percent and contributed -0.4 of a percentage point to GDP growth.
“Net exports contributed positively to growth in expenditure on GDP in the third quarter. Exports of goods and services decreased by 5.9 percent, largely influenced by decreased trade-in vehicles and other transport equipment; chemical products; machinery and equipment; pearls, precious and semi-precious stones, precious metals; and textiles and textile articles,” said Maluleke, noting imports of goods and services declined 2.8 percent, with decreases in mineral products, base metals and articles of base metals and prepared foodstuffs, beverages and tobacco.
After recording four consecutive quarters of positive growth, the country saw its Q3 GDP eroding some of the economic gains the country has made since the severe impact of COVID-19 in the second quarter of 2020, said Stats SA.
In the third quarter of 2021, the country’s level of GDP was on par with the first quarter of 2016.  (Xinhua)