PPS Investments: SA Q4 2023 GDP

Luigi Marinus

South Africa narrowly averted a technical recession as real GDP increased by 0.1% in the final quarter of 2023, after a decline of 0.2% in the third quarter. This resulted in an annual real GDP increase of 0.6% for the calendar year, down from the 1.9% increase recorded in 2022.

For the final quarter positive contributors to GDP were mining and quarrying, finance as well as personal services each contributing 0.1% while transport, storage and communication contributed 0.2%. Detractors to GDP were trade, catering and accommodation (-0.3%) and agriculture, forestry and fishing (-0.2%). Manufacturing, construction, government, taxes less subsidies and electricity, gas and water were negligible contributors to real GDP.

The 0.6% real growth rate for 2023 was below market expectations and is indicative of sluggish infrastructure spend and the effect of loadshedding. With unemployment continuing to be a major concern in the economy, muted GDP growth is likely to make job creation hard to achieve.