South Africans should draw inspiration from the 0.4% increase in GDP, says Ntshavheni

Minister in the Presidency Khumbudzo Ntshavheni says South Africans should celebrate and draw inspiration from the 0.4% increase in gross domestic product (GDP) in the first quarter of 2023, saying it shows the country is able to make a dent in the economic difficulties it faces.

The country barely avoided a recession as the economy grew marginally in the first quarter. 

The Quarterly Labour Force Survey for the first three months showed an increase of 258,000 to 16.2-million in the number of employed people. This was the sixth consecutive quarterly increase.

Ntshavheni said the positive GDP indicators and the survey results serve as encouragement that the country is making progress in line with the economic reconstruction and recovery plan.

“The growth indicators and the recent survey show while the challenges we face in our economy are serious, we have been able to avoid a downturn in economic output,” said the minister. 

“The gains we have seen in a number of sectors tell us we are rebuilding our economy and we must keep working together as a nation to build on the growth we are experiencing.

“As we do so, we cannot rest on our laurels, but neither can we let hopelessness and pessimism overwhelm our ability to turn things around.”

Statistician-general Risenga Maluleke said food and drinks manufacturing performed particularly well, partly because the sector was not as electricity-intensive as other types of manufacturing.

“Household consumption was driven largely by restaurants and hotels and when you look at that, with load-shedding, where do people get their food? They have to call on Uber Eats or order from restaurants,” Maluleke said.

Stats SA last month revealed the unemployment rate among the black population remains higher than the national average and other population groups. 

The data showed the number of unemployed people increased by 0.2% or 179,000 to 7.9-million during the first quarter.

The number of people not economically active for reasons other than discouragement decreased by 209,000 to 13.2-million. 

Discouraged workseekers decreased by 87,000 in the first quarter compared with the fourth quarter of 2022. The number of “not economically active” looking for jobs decreased by 296,000. 

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