FX.co ★ South Africa's GDP Growth Slows to 0.5% in Q1 2024

South Africa's economic engine seems to have hit a snag as the country's GDP growth decelerated significantly in the first quarter of 2024. According to the latest data updated on June 4, 2024, South Africa's GDP increased by a mere 0.5%, a stark decline from the 1.4% growth seen in the previous quarter of 2023.

This downward shift in GDP growth marks a concerning trend given that the fourth quarter of 2023 had seen a relatively robust performance. The year-over-year comparison indicates that the current slowdown is part of a broader economic issue facing the nation, contrasting sharply with the same time period last year.

Analysts are now closely monitoring the situation to understand the underlying causes of this economic softening. Factors like global market dynamics, domestic policies, and investment levels will be critical in determining whether this is a temporary blip or a sign of deeper economic challenges for South Africa.