Johannesburg, Wednesday 05 June 2019 – Brand South Africa notes with concern the results released by Stats SA which indicate that South Africa’s gross domestic product (GDP) declined by 3.2% in the first quarter of 2019, the largest quarterly drop in GDP in a decade.
According to the report, the main contributors to the decline are manufacturing (-8.8%), mining (-10.8%) and agriculture (-13.2%). “The decline is the biggest quarterly fall in economic activity since the first quarter of 2009, when the economy – under strain from the global financial crisis – tumbled by 6.1%,” said Stats SA in a statement.
Economist have attributed it to load shedding, perceived weak economic policy and instability at state-owned enterprises.
“Important for South Africa is the fact that increased trade tensions between major economies stand to have a negative impact on commodity exporters due to potential price volatility. While the South African GDP outlook has seen a downward revision, this happens in a global context, where the World Bank indicated earlier in the year that international trade and investment are moderating – and as such this is a challenge for many emerging markets, and South Africa is no exception. Additionally, the global economy and trading system is being challenged by trade tensions that remain elevated,” said Brand South Africa, General Manager for Research, Dr Petrus de Kock.
“We are confident that under the 6th administration that we will expand the economy, in order to address our many societal problems which, find their roots in the scourge of unemployment, poverty and inequality. These results are a call to action for all stakeholders across all sectors to collaborate in finding sustainable solutions to grow our economy,” concluded Dr de Kock.
Notes to the Editor
About Brand South Africa
Brand South Africa is the official marketing agency of South Africa, with a mandate to build the country’s brand reputation, in order to improve its global competitiveness. Its aim is also to promote pride and patriotism among South Africans, to contribute to nation building and social cohesion.
About Play Your Part
Play Your Part is a nationwide programme created to inspire, empower and celebrate active citizenship in South Africa. It aims to lift the spirit of our nation by inspiring all South Africans to contribute to positive change, become involved and start doing. A nation of people who care deeply for one another and the environment in which they live is beneficial for everyone.
Play Your Part is aimed at all South Africans – from corporates and individuals, NGOs and government, churches and schools, from the young to the not-so-young. It aims to encourage South Africans to use some of their time, money, skills or goods to contribute to a better future for all.
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