Economy straggles in at 0.3% growth in 2016

Johannesburg – Real gross domestic product declined 0.3 in

the fourth quarter of 2016, and came in at positive 0.3 percent overall for the

year.

This is about on par with previous projections for the

economy’s growth to be flat in 2016 as the country battled with the drought and

lower commodity prices, as well as a volatile rand.

In 2015, the economy grew at 1.3 percent.

Finance Minister Pravin Gordhan had expected GDP to come

in at positive 0.5 percent last year before gaining to 1.3 percent this year.

Stats SA, which released the latest figures on Tuesday,

noted the real GDP growth of 0.3 percent was primarily led by increased

economic activity in the tertiary – catering, accommodation, transport and services

- sector and, to a lesser extent, by the secondary sector, where manufacturing

is situated.

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However, the mining and quarrying, agriculture, forestry

and fishing industries, recorded a negative growth rate, decreasing by 5.4

percent.

This is as there were decreases in both the mining and

quarrying and the agriculture, forestry and fishing industries.

The main contributors to increased economic activity in

2016 were finance, real estate and business services, which contributed 0.4 of

a percentage point based on growth of 1.9 percent; general government services,

which contributed 0.2 of a percentage point based on growth of 1.4 percent; and

the wholesale, retail and motor trade; catering and accommodation industry,

which contributed 0.2 of a percentage point based on growth of 1.2 percent,

Stats SA says.

BUSINESS REPORT

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