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Climate change is proving to be relentlessly oppressive towards the Agricultural sector affecting its production. The sector declined by a worrisome 28.8% in the third quarter due to adverse weather conditions.
According to Statistics South Africa (Stats SA), real GDP of South Africa declined by 0.3% in third fiscal quarter (July to September), indicative of a declining economic activity despite the claims of the Government of National Unity (GNU) that it attracts more investment into the country and is beneficial for the country’s economy.
Stats SA says a number of industries performed poorly in the third quarter, but the agricultural sector experienced the biggest decline pulling GDP growth by 0,7%.
According to Stats SA; the industry experienced a rough quarter. Drought plagued the production of field crops such as maize, soya beans, wheat and sunflower. Adverse weather conditions also hindered the production of subtropical fruits, deciduous fruits and vegetables in parts of the country.
Early in the year, the Department of Agriculture affirmed South Africans that the country is not in a food security crisis like its neighbouring country Zimbabwe which experience serious drought affecting their agricultural sector and having to import food supplies.
“Three other industries also performed poorly. Transport, storage and communication were the second largest negative contributor, recording a decline in land transport and transport support services. Disappointing figures from the wholesale trade, motor trade and restaurant, fast-food & catering sectors pushed the trade, catering and accommodation industry lower. The general government was weaker on the back of lower employment numbers in the civil service,” said Stats SA.
The finance sector however, was the biggest positive contributor to real GDP to keep the country’s economy afloat. It was collective effort alongside other industries including banking, insurance, real estate and other business services. The electricity, gas and water supply industry expanded for a second straight quarter, driven higher by a rise in electricity generation and consumption. Stronger manganese and chromium ore production helped boost mining. Iron, steel and machinery production drove much of the upward momentum in manufacturing.
Stats SA says construction’s second straight rise of 1,1% may seem relatively small, but it’s the biggest increase in two years. The positive showing in the third quarter was mainly driven by construction works, with support from activities related to non-residential buildings.
