CAPE TOWN – South Africa swung back to growth as Statistics SA announced that the country’s gross domestic product (GDP) accelerated by 2.2 percent in the third quarter of 2018, signalling that South Africa has officially exited the technical recession.
Risenga Maluleke, South Africa's statistician-general, said the growth was mainly driven by the manufacturing, transport and finance industries.
The economy fell into its first recession since the 2009 global financial crisis in the second quarter with the economy contracting 0.4 percent in the period following a 2.6 plunge in the first quarter of the year.
Peregrine Treasury Solutions corporate treasury manager, Bianca Botes, said the positive GDP figures secured an upward trend for the rand.
“This was above market expectations of 1.6 percent resulting in a boost in the positive momentum in the rand.