Johannesburg - South Africa's economic growth quickened to 3.0 percent quarter-on-quarter in the second quarter of 2013, compared with 0.9 percent in Q1, data showed on Tuesday.
On an unadjusted year-on-year basis, the economy grew 2.0 percent in the second quarter from 1.9 percent in the previous three months.
Economists polled by Reuters last week expected quarter-on-quarter growth to accelerate to 3.3 percent and 1.9 percent respectively on a year-on-year basis.
ELNA MOOLMAN, ECONOMIST, MACQUARIE SECURITIES
“At first glance, it seems as if the primary industries of agriculture and mining were the key disappointments, while the construction and government services sectors also performed slightly worse than we had anticipated.
“Today's data was consistent with our view that the construction sector's recovery will be very gradual, although we had hoped for a slightly better performance than was recorded in the second quarter of 2013.”
JEFF GABLE, ECONOMIST, ABSA CAPITAL
“We are trying to understand what the impact of today's strikes is and whether we are going to see more strikes in the next week or so.
“That will have a very important impact on third-quarter GDP growth and set us up for the full-year.
“It is a difficult environment with commodity prices well off their highs, with labour tensions running high and significant pressure on markets already.
“The central bank would have been expecting a pretty sizeable recovery from the first quarter data. I don't think they will be fooled into believing that suddenly the South African economy is growing at 3 percent.
“Rather, there are clear signs of weakening demand from the consumer side in South Africa.”
MERINA WILLEMSE, ECONOMIST, EFFICIENT GROUP
“The Reserve Bank will keep interest rates at the moment very accommodative. They will keep it stable because on the whole, the outlook on our yearly economic growth is still quite weak.”
The rand weakened slightly to 10.397 against the dollar at 12:26 SA time.
It was at 10.38 before the data was released.
The yield on the three year bond was at 6.410 percent from 6.440 percent before the data was released.
The yield on the longer dated was at 8.49 percent from 8.545 percent before the data release.
- Recovery in Africa's largest economy has been hesitant since a 2009 recession.
- Violent strikes in the mining sector since last year have been a drag on economic growth but a recovery in manufacturing is expected to support growth.
- Strikes in the car manufacturing and construction sectors that started in August threaten to slow growth. - Reuters