Exports and imports shrink by 7.1% - Stats SA

The export of mineral products, precious metals and transport equipment was mainly responsible for the decline in exports, which made a negative contribution of -2.2% to GDP in the first quarter of 2016.

Government was biggest contributor to growth in expenditure on GDP, with a 1% increase in the first quarter of 2016. Overall expenditure on GDP fell by 0.7% in the same period.

The prolonging drought had a significant negative impact on production side of GDP and the decline of 6.5% in the first quarter of 2016 was by and large the result of a lower production of field crops and horticultural products.

In May, Bloomberg reported that South Africa’s wheat production fell to a four-year low in 2015 as the lowest rainfall in more than a century damaged the harvest. This means South Africa would have to import some two million tonnes of wheat in the year throughout September – the highest number since at least 1991.

As for the rest of the 2016 first quarter GDP figures, manufacturing managed to grow by 0.6% with wood and wood products, paper, publishing and printing and basic iron and steel as the divisions that were the main contributors. Construction also increased by 0.5% thanks to increased activity in the area of civil construction works.

Fin24