Category Archives: Economic growth

Economy dodges recession as GDP climbs 3,1%

Economy dodges recession as GDP climbs 3,1%

After shrinking sharply in the first quarter of 2019, the economy rebounded from a low base to record positive growth of 3,1%1 in the second quarter (April−June). Mining, finance, trade and government services were the main drivers of growth. Three industries (construction, agriculture and transport) registered a slump in production. Mining was the strongest performer   read more »


Inflation dips lower in July

Annual consumer price inflation retreated to 4,0% in July from 4,5% in June. This is the lowest CPI headline rate since January, when it was also 4,0%. A fall in fuel prices and a rise in municipal tariffs were the key price movers during the month. Fuel prices edged lower in July, bringing some relief   read more »


Discouragement decreases and unemployment increases in the second quarter of 2019

Discouragement decreases and unemployment increases in the second quarter of 2019

The results of the Quarterly Labour Force Survey (QLFS) for the second quarter of 2019, released by Statistics South Africa (Stats SA), indicate that the official unemployment rate increased by 1,4 percentage points to 29,0% compared to the first quarter of 2019. The number of unemployed persons increased by 455 000 to 6,7 million in Q2:   read more »


Inflation holds steady in June

Inflation holds steady in June

Annual consumer price inflation was 4,5% in June 2019, unchanged from May 2019. The main contributors to annual inflation were food and non-alcoholic beverages; housing and utilities; transport; and miscellaneous goods and services. Housing and utilities make up almost one quarter of the total consumer price index (CPI) in terms of weight (or relative importance).   read more »


728 million stories, waiting to be told

728 million stories, waiting to be told

Wherever you go, you transform the landscape. Imagine living the entirety of your life in the map below. Your daily routine might resemble a zig-zagging pattern as you move across the square cells of the grid. Where you choose to live, work, commute, shop, socialise and play – you influence the economic, social and environmental   read more »


How large is the small business footprint?

How large is the small business footprint?

In 2015, Stats SA published an article highlighting the contribution that small businesses make to industry turnover in South Africa.1 The March 2019 Quarterly financial statistics (QFS) report provides an update. The entire formal business sector2 generated R2,39 trillion in turnover in Q1: 2019. Out of this amount, large businesses contributed 62%, followed by small (29%) and   read more »


A breakdown of the tax pie

A breakdown of the tax pie

Note: The original version of this article was published on 25 June 2019, with the international tax-to-GDP ratio figures based on data from the IMF. After discussions with National Treasury, it was agreed that tax-to-GDP figures from the OECD provide a more relevant picture when South Africa is compared with other countries, as the IMF   read more »


Inflation up slightly in May

Inflation up slightly in May

Annual consumer inflation was 4,5% in May 2019, slightly up from the 4,4% recorded in April 2019. The inflation rate has remained below the 6% monetary policy ceiling since April 2017. During this time inflation has averaged 4,7%. Prices increased by 0,3% on average in May. This was mainly driven by a 3,3% rise in   read more »


Economy stumbles in the first quarter

Economy stumbles in the first quarter

The South African economy slumped sharply in the first three months of 2019, contracting by 3,2%.1 Seven of the ten industries took a knock, with manufacturing, mining and trade the biggest contributors to the fall. Construction, mining and trade are in recession. The 3,2% decline is the biggest quarterly fall in economic activity since the   read more »


Inflation edges slightly lower in April

Inflation edges slightly lower in April

Annual consumer inflation softened to 4,4% in April 2019 after hitting a three-month high of 4,5% in March 2019. While food inflation remains quite stable, rising petrol prices continue to place pressure on consumers. Inflation has remained within the South African Reserve Bank (SARB) target range of 3–6% for two years (since March 2017). The   read more »