South Africa’s economy experienced a 0.3% contraction in the third quarter of 2024, following a revised 0.3% growth in the second quarter, according to data released by Statistics South Africa on Tuesday morning (3 December 2024).
The latest gross domestic product (GDP) figures highlight significant challenges, with agriculture, transport, and communications emerging as the leading contributors to the economic decline.
Speaking on VOC Breakfast, Economist Dawie Roodt expressed surprise at the sharp contraction, noting that it deviated from market expectations.
“It was much more than we expected. We anticipated the economy to grow.”
“The economy contracted by 0.3% in the third quarter of this year. This measures the overall economic performance or production in the third quarter compared to the second quarter. Adjustments for inflation and other factors are also considered,” he explained.
Roodt said that one of the most significant revelations from the GDP data was the nearly 30% contraction in the agricultural sector.
“If you strip agricultural out the equation and ignore it then the underlying economic growth was around 0,2% which was more or less what economist expected.”
Listen to the full interview with Dawie Roodt below:
VOC News
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