South Africa

South Africa GDP Q1 2023

South Africa: GDP bounces back in Q1

GDP rebounded in Q1, expanding 0.4% on a seasonally adjusted quarter-on-quarter basis, contrasting the 1.1% contraction logged in the fourth quarter of last year. The improvement was mainly driven by public spending.

Looking at the details of the release, government spending rebounded, growing 1.2% in Q1 (Q4 2022: -0.7% s.a. qoq). That said, household spending increased 0.4% in the first quarter, which was below the fourth quarter’s 0.7% expansion, while fixed investment growth edged down to 1.4% in Q1 from 1.5% in the previous quarter.

On the external front, exports of goods and services bounced back, growing 4.1% in Q1 (Q4 2022: -3.2% s.a. qoq), amid increased trade in base metals and machinery and electrical equipment. Imports of goods and services also rebounded, growing 4.4% in Q1 (Q4 2022: -0.8% s.a. qoq).

On an annual basis, economic growth moderated to 0.2% in Q1, following the previous quarter’s 0.8% increase. Q1’s performance marked the worst reading since Q1 2021.

Commenting on South Africa’s outlook, analysts at EIU, declared

“We expect real GDP growth to slump to 0.5% in 2023, reflecting a sharp slowdown in the global economy—particularly in the U.S. and Europe—alongside serious domestic constraints, topped by sustained electricity shortages, which are disrupting business operations on a daily basis.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest