GDP Deflator: Year on Year growth: SA %

12 May 2022

Movements in the implied GDP deflator in 2020 and 2021 have been largely affected by the government consumption deflator, which is the expenditure that is incurred by government in producing non-market goods and services, such as health and education. The volume of government activity fell while at the same time government expenditure increased in nominal terms. This reflects how we record volume estimates of health and education as explained in our blog, Public services: measuring the part they play in the economy through the pandemic. As such, we recommend caution when interpreting movements over the course of the coronavirus pandemic.