South Africa’s economic system slowed for a 3rd straight 12 months in 2024, however dodged a recession within the remaining quarter because the agricultural sector rebounded following a drought, official knowledge confirmed on Tuesday.

The nation’s gross home product (GDP) expanded 0.6 % final 12 months in comparison with 0.7 % in 2023, in keeping with the StatsSA statistics company.

The economic system has been slowing for 3 straight years after bouncing again from the Covid pandemic in 2021.

Averted a technical recession

However South Africa prevented a technical recession – outlined as two straight quarters of contraction – because it grew 0.6 % between October and December in comparison with the third quarter, when it shrank by 0.1 %.

The federal government mentioned the expansion was “encouraging and alerts a welcome restoration”.

The fourth-quarter progress was primarily pushed by the agriculture, finance and commerce sectors.

The agricultural sector grew 17.2 % within the fourth quarter, contributing to 0.4 share factors of whole progress, StatsSA mentioned.

The drought had precipitated a giant drop in agricultural manufacturing within the third quarter.

The Democratic Alliance (DA) occasion, a coalition associate within the Authorities of Nationwide Unity (GNU), mentioned the figures confirmed a “stagnant” economic system.

“Except pressing motion is taken, the nation will proceed to slip deeper into financial decline,” it mentioned.

“South Africans are getting poorer 12 months after 12 months,” it mentioned.

The occasion is in a tug-of-war with the ruling African Nationwide Congress (ANC) over a proposal to extend the value-added tax to fund the nationwide funds.

The disagreement final month delayed the revealing of the funds, however a brand new date has been set for March 12.

South Africa’s inflation rose to three.2 % in January.

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