Last Update 21:38
Saturday, 19 October 2019

South Africa dodges recession as economy grows 3.3 pct

(AFP), Tuesday 6 Sep 2016
Views: 1633
Views: 1633

South Africa avoided slipping into recession Tuesday with official statistics showing the economy grew 3.3 percent in the second quarter after a 1.2 percent contraction in the previous quarter.The annualized growth rate was mainly spurred by the manufacturing sector which expanded by 8.1 percent, as well as the real estate and transport sectors that both increased at 2.9 percent.

"Real gross domestic product increased by 3.3 percent in the second quarter of 2016, following a decrease of 1.2 percent in the first quarter of 2016," Stats' reported.

Ned bank economists said the "significantly" improved GDP outcome had surpassed predictions and was "heavily influenced by the first quarter's very low base."

Fears had grown that Africa's largest economy was teetering on the brink of a recession after it suffered a surprise dip in growth in the first three months of the year.

The economy has struggled amid political scandals that hit the rand, as well as high inflation, high unemployment and a record drought that ravaged the agricultural sector.

The central bank had forecasted in June that the economy would grow at zero percent this year.

"The improvement in economic activity over the second quarter was widely anticipated, but few expect this pace to be sustained over the next 12 to 18 months," said Ned bank.

The economic outlook could also be darkened by possible criminal charges against Finance Minister Provide Gordian.

Gordian was appointed last year to calm panicked markets after his predecessor lasted just four days in office, but has come under attack from some close allies of President Jacob Zuma.

The country risks a damaging credit ratings downgrade to junk status later this year.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.