Financial News: South Africa GDP Shrinks 1.3% On Power Cuts

South Africa GDP Shrinks 1.3% On Power Cuts

03/07/2023 - 09:03:00 (RTTNews)

(RTTNews) - The South African economy grew more-than-expected in the fourth quarter, after rebounding in the previous three months amid a power outage due to the impact of flooding in KwaZulu-Natal province, data from Statistics South Africa showed on Tuesday.

In real terms, gross domestic product contracted 1.3 percent sequentially, reversing a 1.8 percent rise in the third quarter. Economists had expected a 0.4 percent fall.

Seven industries recorded negative growth between the third and fourth quarters of 2022, the agency said.

The agriculture sector logged the worst decline of 3.3 percent compared to the previous quarter, closely followed by the mining and quarrying industry with a 3.2 percent decrease.

On the expenditure side, government final consumption fell 0.7 percent. Net exports were also not favourable, as they contributed negatively by 1.1 percent to total growth.

However, household final consumption rose 0.9 percent, and gross fixed capital formation gained 1.3 percent.

On a yearly basis, GDP growth decelerated notably to 0.9 percent in the fourth quarter from 4.2 percent in the preceding three-month period. The expected expansion was 2.2 percent.

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