KEEP UP TO DATE WITH ALL THE IMPORTANT COVID-19 INFORMATIONCOVID-19 RESOURCE PORTAL

FANews
FANews
RELATED CATEGORIES
Category Economy
SUB CATEGORIES General |  Budget 2017 |  Budget 2018 |  Budget 2019 |  Budget 2020 |  Budget 2021 | 

Q1 GDP still 3.2% y-o-y smaller

09 June 2021 Lullu Krugel, Chief Economist for PwC Strategy& Africa, and Dr Christie Viljoen, PwC Strategy& Economist

Full-year economic growth will be influenced by lockdown restrictions

Statistics South Africa (StatsSA) reported on June 8 that the South African economy expanded by 1.1% quarter-on-quarter (q-o-q) and by 4.6% q-o-q on a seasonalised adjusted an annualised rate (saar). Despite the positive growth rate, the economy was still 3.2% year-on-year (y-o-y) smaller during the period. This was slightly worse than the 3.0% y-o-y decline projected by a survey of local economists but less severe than the y-o-y readings seen since 2020Q2. The negative y-o-y reading reflects an economy which remains smaller than it was in the pre-pandemic (2020Q1) period before strict lockdown measures resulted in a large recession during the second quarter of last year.

Three out of ten industries tracked by Stats SA recorded y-o-y growth in the first quarter: agriculture, government services and mining. This means that these sectors are now larger than the pre-pandemic period. Agriculture, which has been steadily growing since mid-2019, expanded by 7.5% y-o-y in 2021Q1. General government services continued with its long-standing expansion – albeit at a slower pace compared to a y-o-y growth rate of 0.5% seen from x to y. The mining sector was one of the largest contributors to overall growth with an expansion of 3.5% y-o-y. South Africa measured a 25.1% y-o-y increase in exports during 2021Q1 on the back of a 32.4% y-o-y increase in the value of mineral sales. This, in turn, was driven by a recovery in global mineral demand and rising international commodity prices.

Click here to read more...

Quick Polls

QUESTION

Healthcare brokers have long complained about inflation-plus medical scheme contribution increases; but pandemic may have changed things. What will pandemic-induced changes in hospital utilisation do to medical scheme contribution increase patterns?

ANSWER

Below inflation increase for 2022, then back to inflation-plus
Long-term trend of below inflation increases
Inflation-linked hikes for 2022, then back to inflation-plus
This is a 2-year hiccup, inflation-plus increase trend remains in place
fanews magazine
FAnews June 2021 Get the latest issue of FAnews

This month's headlines

Broker and insurer collaboration should not be a one-way street
Running on outdated systems… There's risks
Policy wordings with respect to COVID-19
Death or divorce... how best to split assets
Ethical investing… principles and moral codes
Portfolio positioning will serve investors well
Subscribe now