Economist and senior lecturer at the University of the Free State, Dr Arno van Niekerk, says the 0,7% decrease in GDP stats is not as bad as he and other economists had thought it would be.

According to the statistics, released by Stats SA yesterday, manufacturing decreased 5.9% in the second quarter. Eight out of ten manufacturing divisions reported negative growth rates in that time.

In the manufacturing industry, petroleum, chemical products, rubber and plastic products made up the largest contribution to the decrease.

Other divisions in the industry that made notable negative contributions to growth include the food and beverages division, motor vehicles, parts and accessories, and other transport equipment division.

The devastating floods in KwaZulu-Natal and load shedding contributed to the decline, weakening an already fragile national #economy that had just recovered to pre-pandemic levels.

Listen here: https://t.co/KJQNUvPEwI#StatsSA #GDP https://t.co/G5DTAC38Sp

— Statistician-General Risenga Maluleke (@SGMaluleke) September 6, 2022

Agriculture decreased by 7.7%, contributing -0.2% towards GDP growth. Mining decreased by 3.5%, also contributing -0.2% towards the GDP.

The trade, catering and accommodation industry decreased by 1.5%, and like the agriculture and mining industries contributed -0.2% towards GDP growth.

Construction decreased by 2.4%, contributing a -0.1% towards GDP growth.

Household final consumption expenditure increased by 0.6%, contributing 0.4% to the growth.

The largest contribution to growth was in services.

Imports of goods and services increased by 5.6%, driven largely by increases in chemical and mineral products.

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