South Africa Gross Domestic Product (GDP) y/y

Gross Domestic Product (GDP) y/y reflects a change in the total value of all goods and services produced in South Africa in the specified quarter compared to the same quarter of the previous year.

There are three approaches to the calculation of GDP: from production perspective, in terms of revenues received and in terms of expenditures incurred.

• The production approach for GDP calculation is based on the calculation of value added (interim costs are subtracted from the total value of manufactured goods).
• Income approach includes the sum of value added of four parts: compensation of employees, taxes on products and production less subsides, gross operating surplus and other income.
• Expenditure approach is the sum of all final expenditures within the economy. This includes final expenditure on consumption, gross capital formation and net exports of goods and services.

Statistics South Africa quarterly publish data on real GDP calculated by production volume and expenditure, split by the sectors contributing to national GDP. A deflator is used in the value added calculation for different sectors. Also, data is seasonally adjusted (i.e. calculation excludes holidays, climate change, less working days or annual leave schedules).

GDP is the main indicator of the national economy state and an important indicator of the country's level of development. GDP growth can have a positive effect on rand quotes.