South Africa’s economy contracts in the second quarter of 2015
25 August 2015
South Africa’s economy contracted by 1,3% (seasonally adjusted and annualised) in the second quarter of 2015, according to preliminary estimates of real gross domestic product (GDP) released by Stats SA.
The quarter-on-quarter decrease in overall economic activity was characterised by five of the ten main industry groups shrinking in size, while the other five experienced some growth1.
The agriculture industry experienced the largest fall in activity, contracting by 17,4% quarter-on-quarter. With warnings that South Africa is currently experiencing its worst drought since 19922, decreases in the production of field crops (such as maize, sunflower and sugar cane) and horticultural products (such as citrus subtropical fruit) contributed to the industry’s decline.
The mining industry contracted by 6,8% quarter-on-quarter, mainly as a result of lower production in the mining of coal and iron ore.