South Africa’s economy saw modest growth in the fourth quarter of 2024, with gross domestic product (GDP) increasing by 0.6%. This follows a slight contraction of 0.1% in the third quarter, according to the latest data released by Statistics South Africa.
The agriculture, forestry, and fishing industry was the standout performer, recording a significant 17.2% increase and contributing 0.4 percentage points to the overall GDP growth. This was largely driven by heightened economic activity in field crops and animal products.
The finance, real estate, and business services sector also showed strong performance, growing by 1.1% and contributing 0.3 percentage points. Financial intermediation, real estate transactions, and business services all saw increased activity.
The trade, catering, and accommodation sector expanded by 1.4%, adding 0.2 percentage points to GDP growth. Notable growth was reported in wholesale, retail, and motor trade.
In contrast, the transport, storage, and communication industry contracted by 1.0%, reducing GDP by 0.1 percentage points, primarily due to declines in land transport and transport support services. The manufacturing sector also declined by 0.6%, with six out of ten manufacturing divisions reporting negative growth. The largest declines came from the basic iron and steel, non-ferrous metal products, and motor vehicle manufacturing divisions.
Other sectors that saw declines included general government services (-0.5%), electricity, gas, and water (-1.4%), and mining and quarrying (-0.2%), with the latter impacted by lower production of manganese and iron ore.
On the expenditure side, real GDP increased by 0.6% in Q4 2024, reversing the 0.1% decline in the previous quarter. Household final consumption expenditure (HFCE) grew by 1.0%, contributing 0.6 percentage points to GDP growth. The biggest contributors were spending on clothing and footwear (4.4%), food and non-alcoholic beverages (1.4%), recreation and culture (2.5%), and household equipment and maintenance (1.9%).
However, government final consumption expenditure fell by 0.8%, primarily due to reduced purchases of goods and services and lower employee compensation. Gross fixed capital formation also declined by 0.7%, driven by reduced investment in residential and non-residential buildings, as well as machinery and equipment.
Net exports had a neutral impact on GDP, with exports of goods and services rising by 2.1% and imports increasing by 2.0%. Export growth was mainly driven by trade in precious metals and chemical products, while imports were fueled by increased demand for transport equipment, vegetable products, and electrical machinery.
For the full year 2024, South Africa’s real GDP increased by 0.6%, slightly lower than the 0.7% growth recorded in 2023. The finance, real estate, and business services sector was the biggest contributor to annual GDP growth, expanding by 3.5% and adding 0.8 percentage points. Personal services and electricity, gas, and water also posted positive growth.
Conversely, the agriculture, construction, trade, transport, manufacturing, and general government services industries recorded negative growth for the year.
On the expenditure front, household final consumption expenditure rose by 1.0% in 2024, with increased spending on food, household equipment, recreation, health, restaurants, and communication services. However, gross fixed capital formation dropped by 3.7%, while changes in inventories dragged growth down by 1.0 percentage points. Net exports, on the other hand, contributed positively, adding 1.3 percentage points to GDP growth.
