South Africa’s economy grows 1.2% in Q2 2021 — fourth consecutive quarter growth

South Africa’s gross domestic product (GDP) increased by 1.2 per cent in the second quarter of 2021 — the fourth consecutive quarter of economic growth.

This is according to the second-quarter GDP report released by South Africa National Statistics Agency on Tuesday.

The continent’s most industrialised country saw its gross domestic product (GDP) rose by 1.2 per cent in the second quarter of 2021, following a 1.0 per cent increase in the first quarter over the October to December 2020 period.

“Despite the gains made, the economy is 1.4 per cent smaller” than before the coronavirus pandemic, the agency announced in a statement.

The country’s GDP plunged when authorities implemented a first hard lockdown in March last year, closing borders and shutting non-essential businesses for over a month.

“Six of the ten industries recorded a rise in production in the second quarter of 2021,” the report reads.

“Transport and communication activity grew 6.9 percent quarter on quarter, agriculture 6.2 percent, trade 2.2 percent and mining 1.9 percent. 

“Finance contracted 0.4 percent, manufacturing 0.8 percent and construction 1.4 percent.”

According to the report, the rise in trade activity in the second quarter is reflected on the demand (expenditure) side of the economy. 

It added that household final consumption expenditure increased by 0.5%, driven mostly by a rise in household spending on transport, food & non-alcoholic beverages, and health.

Exports also increased by 4.0 percent, driven by trade in mineral products, pearls, precious & semi-precious stones, precious metals and vehicles & other transport equipment.

Rolling restrictions have since continued to stifle economic activity, with a curfew and lockdown measures still in place as the country battles with a prolonged third coronavirus wave.

The economy shrank seven percent last year because of the pandemic, its first annual contraction in 11 years.

For Nigeria, Africa’s largest economy posted 5.01 percent growth in the second quarter of 2021 — the strongest growth since 2014.