Stats SA has released the most recent gross domestic product figures for the third quarter of 2022, showing an unexpected 1. 6% expansion in the quarter.
Growth beat market expectations by some margin: the consensus among economists and analysts that the economy would grow 0. 4% in the quarter, given the higher degree of ongoing load loss. At best, positive reviews were 0. 7%.
However, according to Stats SA, the production of the country’s economic sectors was higher than expected, and the reported figure is 4 times higher than expected.
In particular, knowledge from Stats SA shows that the South African economy in the third quarter is larger than before the Covid-19 pandemic, providing smart news about the country’s economic recovery after two years of lockdown.
Industry Performance
Production in the agricultural, forestry and fisheries industry increased by 19. 2% in the third quarter, contributing 0. 5 percentage points to GDP growth. An increase in economic activity was reported for box crops and horticultural products.
Finance, real estate and business rose 1. 9% in the 3rd quarter, contributing 0. 5 percentage points to GDP growth. Increased economic activity was reported in monetary intermediation, insurance and pension funds, ancillary activities, real estate activities and other businesses.
The shipping, storage and communications industry increased by 3. 7%, contributing 0. 3 percentage points. An increase in economic activities was reported for land transport, maritime transport facilities and communication facilities.
Manufacturing grew 1. 5% in the third quarter, contributing 0. 2 percentage points to GDP expansion. Seven of the ten production divisions recorded expansion rates in the third quarter, Stats SA said.
The department of motor vehicles, fractions and accessories and other transport apparatus contributed the most to the construction of the 3rd quarter. The Food and Beverage Division and the Basic Steel, Non-Ferrous Metal Products, Metal Products and Machinery Division also contributed particularly to growth. .
Real GDP not adjusted for market costs during the first nine months of 2022 grew 2. 3% through the first nine months of 2021, he said.
Expenditure on GDP
Real gross domestic product spending increased by 1. 6% in the third quarter of 2022, reflecting higher economic activity during the period.
This is basically due to public spending, as families continue to be under pressure.
Household final consumption expenditure (CSFS) fell by 0. 3% in the third quarter, contributing -0. 2 percentage points to overall growth. Nondurable goods contributed the most to negative growth.
The main participants in the fall of HFCE were expenditures in the “other” category (-3. 8% and contributing -0. 5 points), food and non-alcoholic beverages (-0. 9% and contributing -0. 1 points) and recreation and culture (-1. 6 points). % and contribution of -0. 1 points).
However, restaurant, shipping and housing spending definitely contributed to HFCE’s expansion in the third quarter.
The Government’s final spending on recruitment increased by 0. 5% in the 3rd quarter, basically on higher goods and services.
Total gross constant capital formation increased by 0. 3%. The main participants in the building were residential buildings (11. 0% and contributing 1. 4 percentage points) and transport devices (11. 0% and contributing 1. 1 percentage points).
There was a buildup of R63 billion inventories in the third quarter of 2022 (annualized and seasonally adjusted), Stats SA said. Strong increases in 3 sectors contributed to the accumulation of stocks: trade, food service and accommodation; transport, garage and communication; and mines and quarries.
“Net exports definitely contributed to the expansion of spending over GDP in the third quarter. Exports of goods and above increased by 4. 2%, largely influenced by the top industry in mineral products, base metals and their articles, agricultural products and paper products,” he said. Said.
Imports of goods and increased 0. 6%, led by higher imports of mineral products and animal and vegetable fats and oils.
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