GDP decreases by 0.6% in first quarter

The seasonally adjusted Gross Domestic Product (GDP) at market prices slumped at an annualised rate of 0.6% for the first quarter of 2014, Statistician General Pali Lehohla announced on Tuesday morning.

This decrease in growth – the worst since the second quarter of 2009 when the world’s economy dipped as a result of the global recession – comes after the GDP grew by an annualised rate of 3.8% in the fourth quarter of 2013.

Releasing the latest GDP results at the Government Communication and Information Systemn (GCIS) offices in Hatfield, Lehohla said the slump was attributed to the on-going strike in the mining sector.

“The main contributors to the decrease in economic activity in the first quarter of 2014 were the mining and quarrying industry (-1.3%) and the manufacturing industry (-0.7%).

“Positive contributors by other industries included finance, real estate and business services (0.4%) and the transport, storage and communication industry, and general government services (0.2%).

“The unadjusted real GDP at market prices for the first quarter of 2014 increased by 1.6% compared with the first quarter of 2013.

“The GDP estimates are preliminary, and may routinely be revised on the basis of additional evidence that has become available by the time the subsequent quarter’s estimates are released,” Lehohla said.

Gerhardt Bouwer, the executive manager of national accounts at Stats SA, said with the mining industry being the main contributor, the long term effects of the slump in the sector may translate in the loss of jobs. – SAnews.gov.za

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