Government welcomes positive GDP growth in the second quarter of 2024

4 September 2024

Government welcomes the country's economic growth, as reflected in the latest Gross Domestic Product (GDP) figures. According to data released by Statistics South Africa (Stats SA), the GDP increased by 0.4% in the second quarter of 2024, following a 0.0% growth in the first quarter. 

On expenditure, real GDP rose by 0.5% in the second quarter, an improvement from the 0.1% decrease in the first quarter of 2024. Household consumption emerged as the largest positive contributor to overall growth, demonstrating the renewed confidence and spending power of South African households. From a production perspective, the finance, real estate, and business services industry played a pivotal role, contributing 0.3% to the overall GDP growth. Other notable contributors include the manufacturing sector, trade, and the electricity, gas, and water supply industry, which saw a remarkable growth of 3.1%, driven by increased electricity generation and water distribution.

The second quarter's economic growth is a clear indication that South Africa’s economy is on a solid path to recovery. The positive trajectory also speaks to the effectiveness of the measures that have been implemented to support recovery and growth. The absence of load shedding has played a crucial role in revitalising key sectors, particularly the electricity, gas, and water supply industry. The Government remains committed to implementing policies that will sustain and accelerate growth, ensuring that the benefits are felt by all South Africans. 

Government acknowledges that sectors such as agriculture, mining, and forestry and fishing are experiencing challenges, but work is being done to provide relief that will ultimately restore growth in these sectors. Government continues to support and foster an environment that encourages sustainable economic development. 

Issued by Government Communications, 4 September 2024