SA's economy ticks up by 0.6% in third quarter of 2024

JOHANNESBURG - The country's economy has averted a technical recession after it grew by a marginal 0.6% in the fourth quarter of last year.

This follows a revised contraction of 0.1% in the previous quarter.

Statistics South Africa (Stats SA) released the final gross domestic product (GDP) data for 2024 on Tuesday.

This indicated the closure of a year marked by improved political and business sentiment, thanks to the Government of National Unity and an extended reprieve in the crippling power cuts.

The better-than-expected performance was helped over the line by the agriculture, forestry and fishing industry - which had underperformed in the third quarter.

The improved output in agriculture was primarily due to increased economic activities reported for field crops and animal products.

The finance, real estate and business services industry was the second top performer during the final three months of the year – contributing 0.3% to the economic rebound.

However, there were still a few industries that were a drag on the overall performance.

They include the transport industry.

Manufacturing also saw a slump, with six of the 10 divisions reporting negative growth.

The latest figures mean the full year growth averaged at 0.6% compared with the 0.7% expansion in 2023.

Despite some optimism for the 2025, the economy remains sluggish and struggling to hit the levels economists say is needed to create jobs.