GDP in South Africa
South Africa - GDP (billions of U.S. Dollars)
Economic activity declines in Q2
Underlying momentum weakened in the second quarter of 2022, as GDP dropped 0.7% on a seasonally adjusted quarter-on-quarter (s.a. qoq) basis, contrasting with the 1.7% expansion seen in the first quarter. The reading was marginally better than the 0.8% contraction markets anticipated. On an annual basis, economic growth moderated to 0.2% in Q2, following the previous period's 2.7% increase. Q2's reading marked the weakest reading since Q1 2021, although this was chiefly due to an unfavorable base effect, as the economy expanded nearly 20% in Q2 2021. The South African economy remains smaller in than before the pandemic.
The quarterly downturn was the result of April’s devastating floods in the KwaZulu-Natal province—the country’s second largest in terms of GDP—and severe power outages throughout the period. This drove a broad-based moderation in domestic demand. Private consumption growth halved, coming in at 0.6% in Q2 (Q1: +1.2% s.a. qoq). An improvement in the unemployment rate (Q2: 33.9%; Q1: 34.5%) likely prevented a sharper slowdown. Additionally, fixed investment growth moderated to 0.5% in Q2, from 3.4% in the prior quarter. Lastly, public consumption dropped at the sharpest pace since Q3 2021, contracting 0.7% (Q1: +1.1% s.a. qoq).
On the external front, exports of goods and services growth slowed to 0.3% in Q2 (Q1: +3.8% s.a. qoq). Conversely, growth in imports of goods and services picked up to 5.6% in Q2 (Q1: +5.1% s.a. qoq). Consequently, the external sector subtracted 1.4 percentage points from overall growth, compared to the previous quarter’s 0.3 percentage point detraction.
FocusEconomics Consensus Forecast panelists project GDP to expand 2.0% in 2022, which is down 0.1 percentage points from last month’s forecast. For 2023, panelists see GDP growth at 1.6%.
South Africa - GDP (USD bn) Data
|GDP (USD bn)||317||297||350||368||360|
5 years of economic forecasts for more than 30 economic indicators.
South Africa Facts
|Bond Yield||8.26||0.29 %||Dec 31|
|Exchange Rate||13.98||-0.21 %||Dec 31|
|Stock Market||0.1||-0.44 %||Jan 06|
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November 10, 2022
Manufacturing production increased 4.9% month on month in seasonally-adjusted terms in September (August: +2.2% mom).
November 3, 2022
The S&P Global Purchasing Managers’ Index (PMI) rose to 49.5 in October, up from the prior month’s 49.2.
October 19, 2022
Inflation dropped to 7.5% in September, which followed August’s 7.6%.
October 11, 2022
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October 5, 2022
The S&P Global Purchasing Managers’ Index (PMI) fell to 49.2 in September, down from August's 51.7.