South Africa’s economy unexpectedly contracted in the third quarter of this year, largely due to a significant decline in agricultural output, according to data released by the statistics agency on Tuesday.
Seasonally adjusted quarter-on-quarter GDP shrank by 0.3%, contrary to economists’ expectations of a 0.5% expansion in a Reuters poll.
Statistics South Africa reported a sharp 28.8% contraction in agriculture during the third quarter, with field crops being the main contributor.
“Maize and soybeans, which make up about 70% of field crops, had a challenging quarter due to drought conditions,” statistician Joe de Beer explained to reporters.
The Southern African region has been grappling with its worst drought in decades this year, significantly impacting economic performance.
On a year-on-year basis, South Africa’s GDP grew by 0.3% in the third quarter, falling short of the 1.2% growth anticipated by economists.
