• D.C.
  • BXL
  • Lagos
  • Riyadh
  • Beijing
  • SG
  • D.C.
  • BXL
  • Lagos
Semafor Logo
  • Riyadh
  • Beijing
  • SG


South Africa’s contracting economy blamed on agriculture sector

Dec 3, 2024, 9:47am EST
africaAfrica
Solidarity Center/Flickr
PostEmailWhatsapp
Title icon

The News

South Africa’s economy unexpectedly shrank in the third quarter of this year, driven by a weak performance in the agricultural sector.

Gross domestic product dropped 0.3% on a quarterly basis, South Africa’s statistics office said on Tuesday.

The agriculture sector’s near 29% contraction was due to the effect of drought on maize, soya beans, wheat and sunflower outputs, as well as on fruits and vegetables. The transportation and trade sectors also contracted, depressing the overall growth picture.

Title icon

Know More

The performance was “against expectations of a modest expansion,” Goldman Sachs said in a note.

It’s an outcome that is “incrementally dovish for South Africa’s rate prospects and increases our conviction in consecutive rate cuts at the next two [monetary policy committee] meetings,” the bank’s economics research note said.

AD
AD