The Federation of Unions of South Africa (FEDUSA) has welcomed the growth of South Africa’s gross domestic product (GDP) by 2, 5% in the second quarter of 2017 from minus 0.7% in the first quarter according to figures that have been released by Statistics South Africa (StatsSA) today.

However FEDUSA remains concerned that the level of growth that has been recorded for the second quarter of this year is still far below targets that have been set down by the National Development Plan (NDP).

“The 2, 5% growth is encouraging and will assist us to come out of recession. However this level of growth is still below the 5,4% target that has been set down by the NDP for the period 2011- 2030 in order to create 11 million much needed jobs for our young people,” said FEDUSA General Secretary Dennis George.

StatsSA said the largest positive contributor to growth in the GDP number in the second quarter of 2017 was the agriculture, forestry and fishing industry, which grew by 33,6% and contributed 0,7 of a percentage point to the overall outcome.

“Finance, real estate and business services increased by 2, 5% and contributed 0, 5 of a percentage point. The mining and quarrying industry increased by 3, 9%, and contributed 0, 3 of a percentage point to GDP growth,” StatsSA said in a statement.

“Household final consumption expenditure increased by 4, 7% in the second quarter of 2017, contributing 2, 8 percentage points to total growth. Government final consumption expenditure increased by 0, 8%, contributing 0, 2 of a percentage point and exports increased by 14, 4% and imports increased by 13, 3%. Net exports contributed 0, 2 of a percentage point to total growth.

“In contrast general government services decreased by 0, 6%, contributing -0, 1 of a percentage point to GDP growth. Gross fixed capital formation decreased by 2, 6%, contributing -0, 5 of a percentage point and changes in inventories in the second quarter contributed -0, 2 of a percentage point to total growth”.

 

Issued by FEDUSA