South Africa’s GDP expanded by 0.6% in Q4 2024, reversing the 0.1% contraction in Q3. The growth was driven by agriculture, finance, and trade, while household consumption spending played a key role on the demand side. For the full year, the economy grew 0.6% compared to 2023.
Key Growth Sectors
• Agriculture rebounded strongly, growing by 17.2% due to increased field crop and animal product production, adding 0.4 percentage points to GDP.
• Finance and business services expanded for the eighth consecutive quarter, boosted by financial intermediation, real estate, and business services.
• Trade grew as retail, wholesale, and motor trade sales improved, driving higher household spending.
Sectors That Struggled
• Manufacturing declined due to weaker metals & machinery and automotive production.
• Transport, storage & communication recorded its fourth consecutive quarterly decline, weighed down by lower land transport activity.
• Mining contracted, as manganese ore, iron ore, gold, and nickel production fell, despite some gains in coal and platinum group metals.
Household Spending and Inventory Drawdowns
• Household consumption grew by 2.3% year-on-year, with increased spending on clothing, food, and household goods.
• R16.4 billion in inventories were drawn down as trade and mining sectors met rising demand.
2024 Economic Performance & Outlook
For 2024, finance, electricity, and mining drove growth, while agriculture and trade dragged on GDP. Declining manufacturing and weak investment in infrastructure remain concerns.
As South Africa looks to 2025, consumer spending and finance sector growth will be key to sustaining economic momentum. For more insights, visit Stats SA for the full GDP report.
Further Africa
