GDP Figures Unpacked
Economist and lecturer from Damelin College, Ndabenhle Mthembu, unpacked the performance of the South African Gross Domestic Products (GDP), in the second quarter (Q2), between April and June 2021 and explains why it performed well in the following three areas; Transport, Communication, and Agriculture.
On Tuesday, 07 September 2021, Stats-SA announced that the South African economy had expanded by 1.2% in the second quarter of GDP. And listed couple of industries, such as Transport, Communication, and Agriculture, as having performed well in the second quarter of GDP. Stats-SA reported that the transport, storage, and communication industry increased by 6,9% in the second quarter of GDP. These figures resulted in a 0.5% increase when compared to the previous quarter.
In an exclusive interview with IzikoDUT, economist, Mthembu, said the GDP figures of Q2 illustrated that South Africa is a consuming economy.
“South Africa is a consumption economy as opposed to being a producing economy, and that is why we don’t see much growth in our GDP. We mostly rely on logistics to transport most goods from point A to point B. Which explains, why we find notable growth in sectors like transport, ” explained Mthembu.
When it comes to communication, Mthembu added that the growth in the number of South African’s working from home. and students engaged in online learning, has triggered high spending on data and internet connections. Therefore, communication figures were also expected to grow.
“In agriculture, obviously, during lockdowns, we saw a remarkable change in the buying habits of most households because people were consuming more, buying large-amounts of food products. So, this has also affected the production side of goods. Point in case, that is why you’ll also find a notable growth in the agricultural sector too,” Mthembu said.