Agriculture Continues to Support Growth - Agri SAAgri SA

Agriculture Continues to Support Growth

Agriculture saved the day once again by being the largest contributor to the growth in South Africa’s economy in the third quarter of 2017. In addition, the sector achieved the largest rise in agricultural production in more than 20 years. The economy grew by 2.0%[3] in the third quarter, slowing from the revised second quarter growth of 2.8%[4]. Growth was supported by a robust performance from agriculture, contributing 0.9 of a percentage point to GDP growth. The industry level growth for the third quarter is summarised in the graph below.

 

Figure 1: Industry growth (third quarter 2017) Source: Stats SA Note: Third quarter (2017) compared to the second quarter (2017). Seasonally adjusted and annualised.

Agriculture expanded by 44,2% in the third quarter. This is the largest rise in agricultural production since the second quarter of 1996. Production growth of field crops and horticultural products were the main contributors to agriculture’s growth. This was the third consecutive quarter of growth by the agricultural sector in 2017, after recording revised growth of 38.7% in second quarter and 23.1% in the first quarter.  Agri SA is pleased with the positive performance of the agricultural sector despite all of the challenges confronting the industry.

Issued by Agri SA, Directorate:  Corporate Liaison

Enquiries

Pusho Makgolane, Research Assistant: Economics and Trade, Agri SA. 012-643 3400 or 078 000 7422.

Dr Requier Wait, Head: Economics & Trade, Agri SA. 012-643 3400 or 073 304 0932.

[3] Source: Stats SA. Note: Quarter-on-quarter growth rates are seasonally adjusted and annualised. The GDP estimates are preliminary and may be revised.

[4] Stats SA revised the second quarter GDP growth from 2,5% to 2,8% after the incorporation of revised data sources.