STATISTICAL RELEASE P0441

1 Private Bag X44, Pretoria, 0001, South Africa, ISIbalo House, Koch Street, Salvokop, Pretoria, 0002 , Tel +27 12 310 8911 STATISTICAL RELEASE P0441 Gross domestic product Second quarter 2021 Embargoed until: 7 September 2021 11:30 ENQUIRIES: FORTHCOMING ISSUE: EXPECTED RELEASE DATE: User information service Third quarter 2021 7 December 2021 (012) 310 8600 STATISTICS SOUTH AFRICA 1 P0441 Gross domestic product, Second quarter 2021 Contents GDP increased by 1,2% in second quarter 2021 .. 2 Gross domestic product at constant 2015 prices: Second quarter of 2021 .. 3 Table 1 Industry value added and GDP (constant 2015 prices, seasonally adjusted and annualised) .. 8 Table 2 Growth rates in industry value added and GDP (constant 2015 prices and seasonally adjusted) .. 9 Table 3 Contributions to growth in GDP (constant 2015 prices and seasonally adjusted) .. 10 Table 4 Industry value added and GDP (constant 2015 prices).

2 11 Table 5 Growth rates in industry value added and GDP (constant 2015 prices) .. 12 Table 6 Expenditure on GDP (constant 2015 prices, seasonally adjusted and annualised) .. 13 Table 7 Growth rates in expenditure on GDP (constant 2015 prices and seasonally adjusted) .. 14 Table 8 Contributions to growth in expenditure on GDP (constant 2015 prices and seasonally adjusted) .. 15 Table 9 Expenditure on GDP (constant 2015 prices) .. 16 Table 10 Growth rates in expenditure on GDP (constant 2015 prices) .. 17 EXPLANATORY NOTES .. 18 TECHNICAL ENQUIRIES .. 18 general INFORMATION .. 19 STATISTICS SOUTH AFRICA 2 P0441 Gross domestic product, Second quarter 2021 GDP increased by 1,2%1 in second quarter 2021 Real gross domestic product (measured by production) increased by 1,2% in the second quarter of 2021, following an increase of 1,0% in the first quarter of 2021. Figure 1 Growth in GDP (%) Six industries recorded positive growth between the first quarter of 2021 and the second quarter of 2021.

3 The largest positive contributors to growth in GDP in the second quarter were the transport, personal services and trade industries. The transport industry increased by 6,9% and contributed 0,5 of a percentage point to GDP growth. The personal services industry increased by 2,5% and contributed 0,4 of a percentage point to GDP growth. The trade industry increased by 2,2% and contributed 0,3 of a percentage point to GDP growth. Figure 2 Contributions to growth in GDP, Q2 2021 (% points) 1 Unless otherwise specified, growth rates are quarter-on-quarter, seasonally adjusted. All growth rates are calculated on the basis of series at constant prices. Expenditure on real gross domestic product increased by 1,2% in the second quarter of 2021, following an increase of 0,8% in the first quarter of 2021. Figure 3 Growth in expenditure on GDP (%) Household final consumption expenditure increased by 0,5% in the second quarter of 2021, contributing 0,3 of a percentage point to total growth.

4 Government final consumption expenditure decreased by 0,1%. Gross fixed capital formation increased by 0,9%, contributing 0,1 of a percentage point to total growth. Changes in inventories in the second quarter contributed -0,2 of a percentage point to total growth. Net exports contributed 0,9 of a percentage point to total growth, mainly attributed to a 4,0% increase in exports of goods and services. Figure 4 Contributions to growth in expenditure on GDP, Q2 2021 (% points) STATISTICS SOUTH AFRICA 3 P0441 Gross domestic product, Second quarter 2021 Gross domestic product at constant 2015 prices: Second quarter of 2021 Primary sector The agriculture, forestry and fishing industry increased by 6,2% and contributed 0,2 of a percentage point to GDP growth. The increase was mainly due to increased production of field crops, horticulture and animal products. The mining and quarrying industry increased by 1,9% and contributed 0,1 of a percentage point to GDP growth.

5 Increased production was reported for platinum group metals (PGMs), gold and coal. Figure 5 Mining and quarrying growth rate (%) Secondary sector The manufacturing industry decreased by 0,8% in the second quarter, contributing -0,1 of a percentage point to GDP growth. Six of the ten manufacturing divisions reported negative growth rates in the second quarter. The petroleum, chemical products, rubber and plastic products division made the largest contribution to the decrease in second quarter growth. The food and beverages division; textiles, clothing, leather and footwear division; and glass and non-metallic mineral products division contributed marginally to the decrease in the second quarter. The electricity, gas and water industry increased by 0,7% in the second quarter, largely due to increases in electricity and water distributed. The construction industry decreased by 1,4% in the second quarter. Decreases were reported for residential buildings, non-residential buildings and construction works.

6 STATISTICS SOUTH AFRICA 4 P0441 Gross domestic product, Second quarter 2021 Figure 6 Manufacturing growth rate (%) Tertiary sector The trade, catering and accommodation industry increased by 2,2%, contributing 0,3 of a percentage point to GDP growth. Increased economic activity was reported in wholesale, retail and motor trade, and there was increased spending on catering and accommodation services. The transport, storage and communication industry increased by 6,9%, contributing 0,5 of a percentage point. Increased economic activity was reported for land transport and communication services. Figure 7 Transport, storage and communication growth rate (%) Finance, real estate and business services decreased by 0,4% in the second quarter. Decreased economic activity was reported for financial intermediation and auxiliary activities. STATISTICS SOUTH AFRICA 5 P0441 Gross domestic product, Second quarter 2021 general government services decreased by 0,9%, mainly attributed to decreased employment in national, provincial and local government.

7 The personal services industry increased by 2,5% in the second quarter. Increases were reported for community services and other producers. Expenditure on gross domestic product at constant 2015 prices: Second quarter of 2021 Household final consumption expenditure (HFCE) Household final consumption expenditure increased by 0,5% in the second quarter, contributing 0,3 of a percentage point to total growth. The highest growth rates and largest contributors were seen in durable and non-durable goods. The main positive contributors to growth in HFCE were expenditures on transport (2,7% and contributing 0,4 of a percentage point); health (2,5% and contributing 0,2 of a percentage point); food and non-alcoholic beverages (1,7% and contributing 0,2 of a percentage point); restaurants (2,4% and contributing 0,1 of a percentage point); communication (1,6% and contributing 0,1 of a percentage point); and clothing and footwear (1,1% and contributing 0,1 of a percentage point).

8 A negative contribution to growth in HFCE was reported for expenditures in the other category2, decreasing by 3,8% and contributing -0,5 of a percentage point, mainly because of lower spending on insurance services in the second quarter. Figure 8a HFCE growth rate (%) Figure 8b HFCE contributions, Q2 2021 (% points) Government final consumption expenditure (GFCE) Final consumption expenditure by general government decreased by 0,1% in the second quarter. Decreases in compensation of employees and spending on goods and services were reported in the second quarter. 2 Given the sources used to estimate HFCE, spending by non-residents in South Africa needs to be deducted from HFCE. Hence, a decrease in non-residents' expenditure increases the 'other' component of HFCE and makes a positive contribution to the HFCE growth rate. STATISTICS SOUTH AFRICA 6 P0441 Gross domestic product, Second quarter 2021 Gross fixed capital formation (GFCF) Gross fixed capital formation increased by 0,9%.

9 The main contributors to the increase were machinery and equipment3 (1,8% and contributing 0,7 of a percentage point), other assets4 (6,4% and contributing 0,7 of a percentage point) and transport equipment (1,1% and contributing 0,1 of a percentage point). Figure 9a GFCF growth rate (%) Figure 9b GFCF contributions, Q2 2021 (% points) Changes in inventories There was a R21,7 billion drawdown of inventories in the second quarter of 2021 (seasonally adjusted and annualised). Large decreases in electricity and mining contributed to the inventory drawdowns experienced in the second quarter of 2021. 3 Machinery and other equipment includes computers and related equipment. 4 Other assets includes research and development, computer software, mineral exploration and cultivated biological resources. STATISTICS SOUTH AFRICA 7 P0441 Gross domestic product, Second quarter 2021 Exports and imports of goods and services Net exports contributed positively to growth in expenditure on GDP in the second quarter.

10 Exports of goods and services increased by 4,0%, largely influenced by increased trade in mineral products; pearls, precious and semi-precious stones; precious metals; and vehicles and other transport equipment. Imports of goods and services increased by 0,4%, driven largely by increases in mineral products; base metals and articles of base metals; and animal and vegetable fats and oils. Figure 10 Exports and imports of goods and services (R million, seasonally adjusted and annualised) Risenga Maluleke Statistician- general STATISTICS SOUTH AFRICA 8 P0441 Gross domestic product, Second quarter 2021 Table 1 Industry value added and GDP (constant 2015 prices, seasonally adjusted and annualised) Agriculture, forestry and fishing Mining Manufac-turing Electricity, gas and water Construc-tion Trade, catering and accommo-dation Transport, storage and communi-cation Finance, real estate and business services general govern-ment services Personal services Total value added at basic prices Taxes less subsidies GDP at market prices R million 2015 98 760 227 875 553 392 114 058 153 831 555 536 360 326 921 868 344 540 651 572 3 981 758 439 035 4 420 793 2016 93 672 220 141 555 880 109 947 155 996 564 281 365 766 938 154 351 165 659 643 4 014 646 435 525 4 450 171 2017 111 545 225 420 554 833 110 275 147 076 556 707 369 580 961 364 356 086 668 356 4 061 243 440 458 4 501 702 2018 111 993 223 666 565 926 111 356 145 423 564 101 380 269 987 772 361 985 668 739 4 121 231 447 438 4 568 670 2019 104 992 221 217 559 347 107 276 141 123 560 610 376 419 1 008 373 367 610 677 488 4 124 458 449 377 4 573 835 2020 119 091 194 968 490 399 100 916 113 123 493 325 318 369 1 016 585 369 303 663 279 3 879 360 400 287 4 279 647 R million (seasonally adjusted and annualised)