SANews
2 minute read
7 Jun 2022
12:45 pm

SA’s economy grows by 1.9% in first quarter of 2022

SANews

Manufacturing industry was major contributor to GDP growth.

Image: iStock

South Africa’s gross domestic product (GDP) increased by 1.9% in the first quarter of 2022.

Addressing media on Tuesday, Statistician-General Risenga Maluleke said in the first three months of the year, the manufacturing industry increased by 4.9%, contributing 0.6 of a percentage point to GDP growth.

Manufacturing

“Seven of the 10 manufacturing divisions reported positive growth rates in the first quarter. The petroleum, chemical products, rubber and plastic products division made the largest contribution to the increase in the first quarter,” he said.

Statistics South Africa (Stats SA) said the food and beverages division; basic iron and steel, non-ferrous metal products, metal products and machinery division, and motor vehicles, parts and accessories and other transport equipment divisions also made significant contributions to growth.

“The trade, catering and accommodation industry increased by 3.1%, contributing 0.4 of a percentage point to GDP growth. Increased economic activities were reported for wholesale trade, retail trade, motor trade, and catering and accommodation services.

“The finance, real estate and business services industry increased by 1.7%, contributing 0.4 of a percentage point to GDP growth. Increased economic activities were reported for insurance and pension funding, auxiliary activities, real estate and business services.”

ALSO READ: Cost of living could surge even more, unless GDP growth, private sector hiring accelerates

During this period, Stats SA said the personal services industry increased by 1.1% and contributed 0.2 of a percentage point to GDP growth.

Increased economic activity

Stats SA said increased economic activities were reported for community and other producers.

“The transport, storage, and communication industry increased by 1.8%, contributing 0.1 of a percentage point. Increased economic activities were reported for land transport and communication services,” said Maluleke.

Expenditure on real gross domestic product increased by 1.9% in the first quarter of 2022.

The main contributors to growth in household final consumption expenditure (HFCE) were expenditures on transport (2.8% and contributing 0.4 of a percentage point), food (2.5% and contributing 0.4 of a percentage point), restaurants (6.5% and contributing 0.2 of a percentage point) and communication (2.4% and contributing 0.1 of a percentage point).