For the whole calendar year, the finance industry was a notable bright spark, pushing GDP growth higher by 0.8 of a percentage point. <\/p>\n\n\n\n
Electricity, gas & water, personal services and mining also expanded over the year. On the other end, agriculture and trade were the largest drags on growth.<\/p>\n\n\n\n
In Q4, Stats SA said that growth was led by agriculture, finance and trade on the supply side of the economy, while household spending led growth on the demand side.<\/p>\n\n\n\n
Agriculture had by far the most significant impact on GDP growth on the supply side of the economy. Following a sharp decline in Q3 2024, the industry rebounded by 17.2%.<\/p>\n\n\n\n
The finance, real estate, and business services industry grew for an eighth straight quarter, with financial intermediation, real estate activities, and other business services being the largest positive contributors.<\/p>\n\n\n\n
The trade industry expanded on the back of increased retail, wholesale and motor trade sales, reflecting positively on the demand side of the economy, with household consumption spending rising. .<\/p>\n\n\n\n
“Seven industries performed poorly, with manufacturing and transport, storage & communication the most significant negative contributors to growth,” said Stats SA. <\/p>\n\n\n\n
“Manufacturing was mainly pulled lower by weaker production levels in the metals & machinery and automotive divisions.”<\/p>\n\n\n\n
“Transport, storage & communication recorded a fourth consecutive quarter of decline. The industry witnessed a pullback in land transport and transport support services.”<\/p>\n\n\n\n
Mining activity was also down due to lower production levels for manganese ore, iron ore, gold, chromium ore, nickel and copper. <\/p>\n\n\n\n Stats SA added that the demand side of the economy, measured by expenditure on GDP, was mainly lifted by a rise in household consumption spending. <\/p>\n\n\n\n Households spent more on clothing & footwear, food & non-alcoholic beverages, recreation & culture, and household goods.<\/p>\n\n\n\n “The data suggest that consumers might have more breathing space than they did a year ago,” said Stats SA. <\/p>\n\n\n\n In real terms, households spent 2.3% more in Q4 2024 compared with Q4 2023. The trade industry increased its size by 1.6% over the same period.<\/p>\n\n\n\n “The economy witnessed a R16,4 billion drawdown in inventories, in part due to the trade industry accelerating efforts to meet demand that exceeded supply.”<\/p>\n\n\n\n “Mining also drew from its stockpiles to address a rise in export demand while production lagged, contributing to the overall drawdown in inventories.”<\/p>\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/03\/image-2.png\")
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