South Africa economy contracts 0.3% in Q3

South Africa’s economy has shrunk 0.3% quarter-on-quarter in Q3 of 2024, as four out of ten industries registered contraction, data by Statistics South Africa showed.

That followed a revised down 0.3% growth in the second quarter.

Agriculture was the sector with the steepest contraction in Q3, 28.8%, as it trimmed overall growth by 0.7 percentage points.

In addition, transport, storage & communication shrank 1.6% quarter-on-quarter, trade, catering & accommodation shrank 0.4%, while output in government services edged down 0.1%.

Conversely, South Africa’s financial services industry registered the sharpest growth in Q3, 1.3%, as it contributed 0.3 percentage points to overall growth.

Net trade contributed 0.1 percentage points, while government spending shed 0.1 percentage points.

Household consumption expenditures grew 0.5% in Q3, while fixed investment expanded 0.3%.

In annual terms, South Africa’s economy grew 0.3% in the third quarter, as it matched the rate of growth in Q2. Yet, the result fell well short of market consensus of 1.2% expansion.

The South African Rand was little changed on the day against the US Dollar, with the USD/ZAR currency pair last trading at 18.0760 ahead of US job openings report for October.