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• Create Date September 5, 2023
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Gross Fixed Capital Formation 2nd Quarter 2023

Investment in fixed investment (GFCF) increased by a faster rate, up 7.7 percent y-y (constant prices) in Q2, compared to an annual increase of 4.0 percent in Q1. Investment growth accelerated in terms of SOE's and the private sector, while investment by government departments slowed to an increase of 8.7 percent y-y in Q2 from 12.2 percent in Q1. Economic growth accelerated marginally from 0.4 percent in Q1 to 0.6 percent with a recovery in the Agricultural, Manufacturing, Finance, Transport and Government services offering support to Q2 economic growth. The mining sector posted slightly weaker growth, while Electricity, Construction, Trade services and Transport weighed negatively on GDP.  The contribution of fixed investment to GDP accelerated to 15.5 percent, back to pre-covid levels, but still overwhelming inadequate to improve the investment and infrastructure deficit faced by the country.  A total of R97bn was spent in construction, putting the industry still well below pre-covid levels (20% lower) and 33 percent lower compared to mid 2016 (the start of the more recent downturn).

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