Experts say economic momentum remains elusive after weak GDP growth
JOHANNESBURG - Experts said economic momentum remains elusive after GDP grew by an anaemic 0.1% in the first quarter of 2025.
Agriculture bloomed in the three months under review, giving the economy a massive lifeline of 15%.
But chronic challenges in mining and manufacturing offset agricultural wins, pulling performance down.
Statistics South Africa (Stats SA) released the latest GDP figures on Tuesday.
While economists at Nedbank said they didn't expect fireworks, the quarter one GDP figures were disappointing.
Although adverse global developments earlier in 2025 also played a role, an economist at the North-West University Business School, Raymond Parsons, said the weaker economic data was already apparent before then.
He said that the ABSA Purchasing Managers' Index for May had remained in contractionary territory for seven consecutive months, despite showing some recent signs of business activity and demand improvement.
He said the key manufacturing sector was likely to continue to be a lagging one for now.
If the challenges persist, Parsons said the growth outlook for 2025 now seemed likely to be only about 1%, lower than projections by the South African Reserve Bank (SARB) and National Treasury.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
19 hours ago
- IOL News
Government targets food security and farmer support in new agriculture plan
Minister of Agriculture John Steenhuisen has revealed plan aimed at strengthening the country's agriculture sector, with a focus on economic growth, food security, and greater support for farmers. Speaking at the AVI Africa Poultry Conference on Thursday, Steenhuisen highlighted the importance of partnerships, reform, and coordination as key drivers of a more robust agricultural economy. His remarks came just days after the release of new GDP figures from Statistics South Africa, which showed that the agriculture, forestry, and fishing industry grew by 15.8% in the most recent quarter contributing 0.4 percentage points to the country's overall GDP growth.
The Citizen
a day ago
- The Citizen
Mpumalanga Department of Economic Development and Tourism plans to create 60 000 jobs
The Mpumalanga Department of Economic Development and Tourism (DEDT) said the Medium Term Development Plan's job creation target is 60 000 new and sustainable jobs per annum, and a reduced unemployment rate of 25% by 2030. In May, Stats SA released the Quarterly Labour Force Survey for the first quarter of 2025. The report states that about 43 000 Mpumalanga residents lost their jobs in the first three months of this year. It also shows that the country's total number of unemployed youth (15 to 34 years) increased by 151 000 to 4.8 million, while employed youth recorded a decrease of 153 000 to 5.7 million. As a result, the youth unemployment rate increased from 44.6% in the fourth quarter of 2024, to 46.1% in the first quarter of 2025. Currently, youth unemployment in Mpumalanga is at 46.4%, one of the highest in the country. ALSO READ: 43 000 Mpumalanga residents lose jobs in first quarter of 2025 Silence Mhlaba of the DEDT said it should be noted that Mpumalanga also recorded job losses in both the first and second quarters of 2024, but recovered very well in the last six months of the year with net job gains of more than 62 000. 'It is important to put this in perspective, because the first quarter is normally exposed to several challenges such as seasonal factors and new entrants to the labour market. This is especially people who completed their secondary or tertiary qualifications. This results in some job losses and an increase in the unemployment rate.' He said the provincial government, through DEDT and its entities, will continue with its catalytic economic projects and plans to stimulate the economy and contribute to the much needed jobs. 'All our economic plans should promote inclusive economic growth and job creation, which will have a positive impact on Mpumalanga's the high poverty and inequality rates.' ALSO READ: Nzimande calls for investment in research and development during G20 meeting in Mbombela Mhlaba said addressing the high youth unemployment remains a top priority of government and business. 'We will continue to assist our young people to have the right qualifications and skills, in line with the province's economic needs.' He said almost 28% of the employed in Mpumalanga are people in the informal economy. Mhlaba said the DEDT has developed a provincial informal sector policy and is busy finalising it for implementation. 'Job creation is a co-responsibility between the public and private sectors. Infrastructure investment, for example, is crucial to stimulate the economy and create jobs on a large scale,' Mhlaba said. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
a day ago
- The Citizen
Ban on Brazil poultry imports adds to SA food insecurity
The country's agricultural sector faces setbacks from disease outbreaks and food insecurity affecting millions of households. While the year began on a positive note for South Africa's agriculture, particularly in terms of exports, this is no time for celebration, said Agricultural Business Chamber of South Africa chief economist Wandile Sihlobo yesterday. 'We face serious challenges in South Africa's agriculture, the most pressing one being foot-and-mouth disease (FMD),' he said. Brazil ban disrupts South Africa's poultry supply 'Another issue we are monitoring is the impact on poultry supplies resulting from the ban on Brazil's poultry imports due to the avian influenza outbreak in that country.' In February, Statistics South Africa noted that the General Household Survey in 2019, 2022 and 2023 indicated households in South Africa continue to experience challenges related to both moderate to severe and severe food insecurity, despite the country being generally food secure at the national level. The report suggests in 2023, about 19.7% (roughly 3.7 million households) experienced moderate to severe food insecurity while about 8% (1.5 million households) experienced severe food insecurity. Sihlobo said there are ways of addressing the concerns of poultry supplies by restricting imports from affected regions, rather than the whole country, a step that Namibia has taken. Call for more targeted import restrictions and better data 'It is also in this perspective that I worry about the constant news flow that suggests South Africa will face a food crisis if we temporarily limit Brazil's poultry imports,' he said. 'It would have been much more helpful to provide regulators with valuable insights and data on imports, as well as potential opportunities for the future so that they could make informed decisions.' ALSO READ: Industry warns of meat price spike and hunger as SA faces supply crisis Sihlobo said a ban on imports was costly and may have implications for jobs in the importing businesses. 'However, this is not a permanent decision and regulators continually assess issues, taking into account the impact of their decisions on the value chain,' he said. 'What we should help them with is valuable data to aid their choices. This is not the time for the economics of Chicken Little. We need poultry imports. South Africa imports roughly 20% of its annual poultry consumption and Brazil is the major supplier – that is clear. 'However, the path now lies in navigating the issue delicately. We must also be extra cautious when outbreaks occur and allow scientists the space to make informed judgments.' Farmers raise alarm over FMD impact and vaccination costs Free state cattle farmer Tewie Wessels said he was very unhappy about the outbreak of FMD. 'What happens at the end of the day, is the farmer and the consumer will come short and take the knock,' said Wessels. A farmer, who agreed to speak anonymously, said there was more to FMD than meets the eye. The farmer said it didn't affect a small-scale farmer with 10 cattle, but large-scale farmers with 1 000 cattle. 'It's a money-making scheme because the only solution at the end of the day is to vaccinate all our cattle.' NOW READ: Will SA run out of beef and chicken? Animal disease hits SA's top producer — what it means for consumers
