Busa worries about GDP decline

Johannesburg - A drop in growth of the country's gross domestic product figures is of concern, Business Unity SA (Busa) said on Tuesday.

"Busa remains concerned at yet another decline in economic growth in 2013, as evidenced by the latest statistics for [the first quarter]," spokesperson Raymond Parsons said in a statement.

Although the growth remained positive, it was under growth-difficult circumstances amid recent difficult labour relations, which contributed to declining investor confidence locally and abroad.

"Expectedly, the manufacturing and agricultural sectors showed the biggest drop, and economic trends since then are unlikely to reverse the deteriorating outlook."

Earlier in the day, Statistics SA announced a 0.9% increase in the GDP in the first quarter of 2013.

The increase was lower than the 2.1% in the fourth quarter of 2012, but was 1.9% up on the first quarter of 2012.

The main contributors were mining and quarrying, finance, real estate and business services, which each contributed 0.7%.

General government services contributed 0.3%, and wholesale, retail, motor trade, catering, accommodation industry, transport, storage and communication 0.2% each.

Sectors which experienced declines were manufacturing, at -1.2%, and agriculture, forestry, fishing, electricity, gas and water industries at -0.1% each.