South African gross domestic product (GDP) expanded by 1.9% in the first quarter (Q1) of 2022, representing a second consecutive quarter of upward growth, Statistics SA has said.
The size of the economy is now at pre-pandemic levels, with real GDP slightly higher than it was before the Covid-19 pandemic.
The release covers January, February and March, meaning that the economic impact of the devastating floods in KwaZulu Natal, which occurred during the second quarter in April, will only reflect in the GDP results due for release in September.
On the production side of the economy, eight of the ten industries had recorded positive growth in the first quarter, with manufacturing the star performer, said Stats SA.
The sharp increase in manufacturing output was mainly driven by a rise in the production of petroleum and chemicals, food and beverages, and metals and machinery.
Finance, real estate and business services, as well as trade, also made sizable positive contributions to GDP growth. Trade activity was buoyant in the first quarter, with positive results from wholesale, retail, motor trade, and catering and accommodation.
After a strong fourth quarter, agriculture growth was more subdued in the first quarter, edging higher by 0.8%. The rise in the first quarter was mainly underpinned by increased horticulture production.
In a rare case of the national statistical agency becoming a contributor to growth, Stats SA’s drive to employ thousands of fieldworkers for the population census helped generate economic activity in general government.
On the downside, both mining and construction contracted in the first quarter.
Mining output was lower, mainly due to a pullback in the production of platinum group metals, iron ore and gold. Construction saw its fourth consecutive quarter of contraction, with underwhelming results reported for residential buildings and construction works. Economic activity related to non-residential buildings, however, increased in the first quarter.
