GDP increased by 1,2% in the fourth quarter of 20211

Gross domestic product (measured by production)

8 March 2022

South Africa’s gross domestic product (GDP) increased by 1,2% in the fourth quarter of 2021.

The personal services industry increased by 2,7%, contributing 0,4 of a percentage point to GDP growth. Increased economic activities were reported for community and other producers.

The manufacturing industry increased by 2,8% in the fourth quarter, contributing 0,3 of a percentage point to GDP growth. Eight of the ten manufacturing divisions reported positive growth rates in the fourth quarter. The petroleum, chemical products, rubber and plastic products division made the largest contribution to the increase in the fourth quarter. The food and beverages division and textiles, clothing, leather and footwear division also made significant contributions to growth.

The trade, catering and accommodation industry increased by 2,9%, contributing 0,3 of a percentage point to GDP growth. Increased economic activities were reported for retail trade, motor trade, and catering and accommodation services.

The agriculture, forestry and fishing industry increased by 12,2% and contributed 0,3 of a percentage point to GDP growth. The increase was mainly due to increased production of animal products

The transport, storage and communication industry increased by 2,2%, contributing 0,2 of a percentage point. Increased economic activity was reported for land transport and transport support services.

Expenditure on GDP2

Expenditure on real gross domestic product increased by 1,3% in the fourth quarter of 2021.

Household final consumption expenditure increased by 2,8% in the fourth quarter, contributing 1,8 percentage points to total growth. The highest growth rates were reported for expenditures on durable and semi-durable goods.

The main contributors to growth in HFCE were expenditures on food (3,9% and contributing 0,6 of a percentage point), restaurants (13,2% and contributing 0,5 of a percentage point), furnishings (7,6% and contributing 0,4 of a percentage point) and transport (1,9% and contributing 0,3 of a percentage point).

Expenditure on housing, education, communication and recreation were the lowest contributors to growth in HFCE.

Final consumption expenditure by general government increased by 0,1% in the fourth quarter. An increase in spending on goods and services was reported in the fourth quarter.

Total gross fixed capital formation increased by 1,9%. The main contributors to the increase were machinery and equipment3 (6,7% and contributing 2,6 percentage points) and ‘other’ assets4 (5,2% and contributing 0,6 of a percentage point).

There was a R17 billion drawdown of inventories in the fourth quarter of 2021 (seasonally adjusted and annualised value). Large decreases in trades and manufacturing contributed to the inventory drawdowns experienced in the fourth quarter of 2021.

Net exports contributed negatively to growth in expenditure on GDP in the fourth quarter. Exports of goods and services increased by 8,5%, largely influenced by increased trade in pearls, precious and semi- precious stones, precious metals; base metals and articles of base metals; vehicles and other transport equipment; and vegetable products.

Imports of goods and services increased by 8,9%, driven largely by increases in machinery and equipment; vehicles and other transport equipment; base metals and articles of base metals; and mineral products.