National GDP growth indicate improving economic conditions in the WC economy
“The growth observed in 7 out of 10 national sectors, particularly in finance, energy, and construction, is encouraging and suggests the possibility of positive Gross Domestic Product (GDP) growth at the provincial level,” said Dr Ivan Meyer, Western Cape Minister of Agriculture, Economic Development and Tourism.
Minister Meyers' comments follow the StatsSA release of the GDP figures for the second quarter of 2024.
According to Risenga Maluleke, the Statistician-General, key findings for the second quarter of 2024 are:
- Real GDP, measured by production, increased by 0,4% in the second quarter of 2024, following a 0,0% growth in the first quarter of 2024. After a stagnant first quarter, this positive growth in the second quarter indicates a potential upward trend in the provincial economy.
- Seven industries recorded growth between the first quarter of 2024 and the second quarter of 2024.
- The finance industry increased by 1,3% and contributed 0,3% points to SA's GDP growth.
- The trade industry increased by 1,2% and contributed 0,1 points.
- The manufacturing industry increased by 1,1% and contributed 0,1 points.
StatsSA also highlights that the transport industry was the main negative contributor, decreasing by 2,2% and contributing -0,2 % of a percentage point. The agriculture, forestry, and fishing industries also reduced by 2,1%, contributing -0,1 % to the GDP growth. This was primarily due to decreased economic activities reported for field crops and animal products. The mining and quarrying industry decreased by 0,8% due to decreased economic activities in iron ore, coal, diamonds, and gold.
Minister Meyer said, “The finance and business sector contributed the most to national GDP growth in Q2 2024 (adding 0.3 percentage points) and created the most jobs in the province (27 000 q-on-q) during the same period. The finance sector is also the largest employer in the Western Cape, and therefore, its growth at the national level may be significant for the province”, added Minister Meyer.
Construction gained momentum at a national level with a 0.5% increase in quarter 2 of 2024 (compared to a -2.0% decrease on average over the previous year).
Minister Meyer added, “This is promising for the Western Cape given that future construction momentum is also reflected in the Western Cape.”
Construction monitoring firm DataBuild reports that 90 construction projects were awarded across the province in Q2 2024, with an estimated value exceeding R5 billion. This represents a notable increase from the 41 projects awarded during the same period in the previous year.
Minister Meyer warned that while the national GDP results are encouraging, there is a lot of work to do to ensure that there is a job in every household, adding that the Western Cape was fully committed to the Government of National Unity’s commitment to inclusive economic growth and jobs, reducing poverty and the high cost of living and building a capable state.
Business confidence increased in the Western Cape in 2024, Quarter 3. According to the Bureau for Economic Research, the Western Cape's RMB/BER Business Confidence Index (BCI) increased from 40 to 43 points, closing higher than South Africa’s 38 points.
“This first post-Government of National Unity (GNU) BCI reading reflects cautious optimism about improving business conditions and business being more optimistic about the future economy.”
“Guided by our Growth for Jobs strategy, the Western Cape Government is working hard towards realising our vision of a Western Cape economy growing at 5%, creating hundreds of thousands of new jobs, and lifting people out of poverty.”
“Through this strategy, by 2035, we are working to see private-sector investment reach 20% of regional GDP (translating to R200 billion), the value of Western Cape exports of goods and services (inclusive of tourism) triple to R450bn, and the Western Cape have the infrastructure required to support and enable a R1 trillion economy,” concluded Minister Meyer.
Media Enquiries
Daniel Johnson
Spokesperson for Minister Ivan Meyer
Cell: 079 990 4231