Govt says economic growth is a clear indication that SA is on a solid path to recovery

Public information entity Government Communication and Information System (GCIS) said on Wednesday South Africa’s economic growth in the second quarter shows that the economy is on a solid path to recovery, highlighting government’s commitment to implementing policies to sustain and accelerate growth.

Statistics South Africa released data recently indicating the country’s GDP increased by 0.4% in the second quarter of 2024, following 0.0% growth in the first quarter.

On expenditure, real GDP rose by 0.5% in the second quarter, an improvement from the 0.1% decrease in the first quarter of 2024.

Government attributed this to the “effectiveness of the measures that have been implemented to support recovery and growth”, also noting that a lack of loadshedding had played a crucial role in revitalising key sectors, such as electricity, gas, and water.

The GCIS noted that household consumption was the largest positive contributor to overall growth, which it said demonstrated the renewed confidence and spending power of South African households.

“From a production perspective, the finance, real estate, and business services industry played a pivotal role, contributing 0.3% to the overall GDP growth. Other notable contributors include the manufacturing sector, trade, and the electricity, gas, and water supply industry, which saw a remarkable growth of 3.1%, driven by increased electricity generation and water distribution,” it said.

Government acknowledged challenges in agriculture, mining, and forestry and fishing, but assured the public of work to restore growth in these sectors.

Meanwhile, the Democratic Alliance noted that while the Government of National Unity (GNU) had made strides in improving investor outlook, it believed that the country’s economy remained in crisis.

The party called on the GNU to expedite efforts to reform the country’s ports, which it said ranked among the least efficient globally; it also wanted improvements of freight rail and logistics systems to enhance export capabilities.

The party said the GNU must strengthen local governments, which it said were the frontline for business operations; and it wanted a reduction in crime.