Introduction

Analysing economic growth from the expenditure side: Activities

1. Use the online statistical query tool of the South African Reserve Bank to complete the following table about the annual growth in expenditure on real gross domestic product for the period 2014 to 2019.

Tool: Online Statistical Query Tool

Annual growth in expenditure on gross domestic product at constant 2010 prices, 2014-2019
2014 2015 2016 2017 2018 2019
Final consumption expenditure by households
Final consumption expenditure by general government
Gross capital formation
Gross fixed capital formation (Investment)
Gross domestic expenditure
Exports of goods & services
Imports of goods & services
Gross domestic product at market prices
Click to Show Answer

To find the percentage change you need to use the KBP codes.  For final consumption expenditure by households it is KBP 6007Z, for  final consumption expenditure by general government it is KBP 6008Z etc.

Annual % growth in expenditure on gross domestic product at constant 2010 prices, 2014-2010
2014 2015 2016 2017 2018 2019
Final consumption expenditure by households 0,8 1,9 0,6 2,1 1,8 1,0
Final consumption expenditure by general government 1,7 -0,8 2,2 0,2 1,9 1,5
Gross capital formation -1,8 4,9 -8,1 3,2 -2,8 -1,6
Gross fixed capital formation (Investment) 0,7 2,5 -3,5 1,0 -1,4 -0,9
Gross domestic expenditure 0,5 2,0 -0,9 1,9 0,9 0,6
Exports of goods & services 3,6 2,9 0,4 0,7 2,6 -2,5
Imports of goods & services -0,6 5,4 -3,9 1,0 3,3 -0,9
Gross domestic product at market prices 1,8 1,2 0,4 1,4 0,8 0,2

 

a. Which one of the following components of expenditure on gross domestic product show a continuous increase in the level of expenditure?

Correct.

From the data you can see that it has increased every year.

Incorrect.

In 2016,  2018 and 2019 there was a decline in gross fixed capital formation.

Incorrect.

In 2019 there was a decline in exports.

Incorrect.

In 2014, 2016 and 2019 there was a decline in imports of goods and services.

b. If you compare final consumption expenditure by government with gross capital formation, you can conclude that …

Incorrect.

From the following diagram it is clear that gross capital formation is more volatile than final consumption expenditure by government.

[Diagram]

Correct.

From the following diagram it is clear that gross capital formation is more volatile than final consumption expenditure by government.

[Diagram]

c. Growth in fixed capital formation and growth in imports of goods and services tend to move in the same direction.

Correct.

From the data it is clear that if fixed capital formation increases, then imports of goods and services also tend to increase.

Incorrect.

From the data it is clear that if fixed capital formation increases, then imports of goods and services also tend to increase.