SA’s economy shrinks by 1.5% in Q3 of 2021

This quarter's results have factored in the economic disruptions caused by the civil unrest in July.

Picture: Pixabay.com

JOHANNESBURG - South Africa's economy has shrunk by 1.5% in the third quarter of this year.

This comes after it recorded growth for four consecutive quarters, with last quarter expanding by 1.2%

This quarter's results have factored in the economic disruptions caused by the civil unrest in July.

Trade, catering and accommodation were the biggest contributors to the GDP contraction, contributing 0.7% in negative growth.

This was due to the decrease in economic activity in wholesale, retail and motor trade as well as catering and accommodation services.

Manufacturing was also hard hit, with economic activity down by 4.2%.

The knock-on production of field crops and animal products resulted in a 0.4% contraction in the agriculture, forestry and fishing industry.

Stats SA said economic activity was also down in the transport, storage and communication industries, which shrunk by 2.2%.