South African economy contracts for the 1st time since 2009Staff writer ▼ | June 9, 2016
The South African GDP shrank 0.20 percent year-on-year in the first quarter of 2016, following downwardly revised 0.5 percent growth in the previous period.
Africa Finance, real estate and business services expanded 2.3 percent
Compared to the first quarter of 2015, mining and quarrying sector shrank 8.5 percent (-0.5 percent in Q4), manufacturing dropped 0.9 percent (-1.2 percent in Q4), agriculture output fell for the fourth straight quarter by 2.9 percent (-5 percent in Q4), transport decreased 0.6 percent (+0.5 percent in Q4) and electricity, gas and water declined 4.5 percent (-2.9 percent).
Meantime, finance, real estate and business services expanded 2.3 percent (+2.4 percent in Q4) and construction grew at a faster 2.6 percent (+1.6 percent in Q4). Also, activities in wholesale, retail, motor trade, catering and accommodation increased 1.2 percent, following a 1.7 percent growth in Q4.
On a quarterly basis, the economy contracted 1.2 percent, following a 0.4 percent growth in the fourth quarter. ■