The African National Congress (ANC) said on Wednesday South Africa’s 0.6% GDP growth shows a positive growth trajectory despite challenges in areas such as standards of living, which it attributed to an inflationary economy and other economic factors.

South Africa’s GDP increased by 0.6% in the fourth quarter of 2024, following a decrease of 0.1% in the third quarter of the year.

ANC national spokesperson Mahlengi Bhengu-Motsiri noted that the growth was indicative of economic expansion, which she said imbued hope and served as positive sign for economic growth.

“This development is aligned with our priorities of pursuing a developmental macroeconomic framework, tackling the high cost of living in line with our economic transformation agenda,” she said.

Bhengu-Motsiri said that as a measure of economic growth, the 0.6% expansion demonstrated strides made to ensure an upward and positive developmental path and “a country at work”.

The agriculture, forestry and fishing industry increased by 17.2%, contributing 0.4 of a percentage point to the positive GDP growth, while the finance, real estate and business services industry increased by 1.1%, contributing 0.3 of a percentage point.

The trade, catering and accommodation industry increased by 1.4%, contributing 0.2 of a percentage point and the transport, storage and communication industry decreased by 1%, contributing -0.1 of a percentage point.

The agriculture; construction; trade; transport; manufacturing; and general government services industries recorded negative growth in 2024.

Statistics South Africa attributed the growth to agriculture, which Bhengu-Motsiri said had the most significant positive impact on GDP growth on the supply side of the economy owing to a rise in the production of field crops and animal products.

“This growth was boosted by the sterling performance by finance, real estate and business services which grew for an eighth consecutive quarter, with financial intermediation, real estate activities and other business services the largest positive contributors to growth,” she said.

The ANC said it would continue to work with the business sector, investors and other stakeholders for small- medium-sized, and microenterprise growth, poverty eradication and job creation.

“This positive economic development is a testament to South Africa’s resilience and the ongoing efforts to build a stronger, more inclusive economy. The ANC remains committed to fostering sustainable growth that benefits all South Africans and strengthens our vision of a better life for all,” explained Bhengu-Motsiri.