South Africa’s economy sees the worst quarterly drop in a decade

The South African economy just had its worst quarter in more than ten years, according to Statistics South Africa.

The stats body on Tuesday announced GDP and economy figures for South Africa in Q1 2019. During the first three months of the year, the economy retracted 3.2% compared to Q4 2018.

It’s the biggest quarterly drop since Q1 2018, and breaks a two-quarter spell of economic gains.

The South African #economy declined by 3,2% in Q1:2019 compared with Q4:2018 mainly driven by declines in #manufacturing & #mining. This is the largest quarterly drop in about 10 years #StatsSA #GDP https://t.co/EdEV4ONBwq pic.twitter.com/89O3NKX55S

— Stats SA (@StatsSA) June 4, 2019

Only government, finance and personal services industries recorded growth.

The losses were driven mainly by mining (-10.8% quarter-over-quarter) and manufacturing sectors (-8.8% quarter-over-quarter). The agricultural sector however was the biggest loser, tanking more than 13.2% quarter-over-quarter.

Electricity (-6.9% quarter-over-quarter) and transport (-4.4% quarter-over-quarter) sectors were the other big losers.

Government recorded a 1,2% growth mainly as a result of short-term employment in the civil service in the run-up to the #elections #StatsSA #GDP https://t.co/2d4zyGjj9x pic.twitter.com/2Da94ibBtA

— Stats SA (@StatsSA) June 4, 2019

People also spent less money in Q1 2019 compared to Q4 2018. The beginning of the year saw a 0.8% drop over the previous quarter, with a steep 12.7% quarter-over-quarter decline in clothing and footwear spending.

Locals and visitors to South Africa did however venture out more, with restaurants and hotels seeing a 5% increase in spending over Q4 2018.

Household spending was down by 0,8% in Q1:2019 as spending of clothing & footwear as well as #transport declined #StatsSA #GDP https://t.co/2d4zyGjj9x pic.twitter.com/FtOBmhZlnc

— Stats SA (@StatsSA) June 4, 2019

This is a developing story…

Feature image: stevepb via Pixabay