GDP contracts by 0,3% during fourth quarter of 2016.

FOR WHAT IT’S WORTH: South Africa might have reclaimed the top spot in African economies, however, it is still the same economy facing the same problem of growth below 1%. Picture: Getty Images

Statistics South Africa (StatsSA) has on Tuesday announced that the country’s Gross Domestic Product (GDP) contracted by 0,3% in the fourth quarter of 2016.

According to Chief Director for national accounts at Stats SA Michael Manamela, the biggest contributors to the drop was the mining and quarrying industry as well as the manufacturing industry.

“Mining and quarrying decreased by 11,5% in 4th quarter and this decrease is largely due to lower production in coal, gold and other metal ores,” said Manamela.

Stats SA also revealed that manufacturing had decreased by 3,1% due to lower production in the manufacturing of food and beverages, petroleum, chemical products, rubber and plastic products and manufacturing of motor vehicles, parts and accessories and other transport equipment.

According to Manamela, agriculture, forestry and fishing industry has been in decline for eight consecutive quarters.

Last year fears of a recession were sparked after GDP figures in the first quarter, declined by an unexpected 1.2% after weak growth of 0.4% in the fourth quarter of last year.

Lehohla announced in December last year that SA’s economy (gross domestic product) had barely grown in the third quarter due to a sharp fall in manufacturing.

Growth came in at 0.2% for the third quarter.Year-on-year the economy grew at 0.7% from 0.6%.

Meanwhile Manamela on Tuesday also announced that final consumption expenditure by general government had increased by 0,3% while gross fixed capital formation increased by 1,7%.

TNA Reporter