SA moves out of technical recession, economy grows by 2.2%
Economy / 4 December 2018, 11:47am / Ashley Lechman and Kabelo Khumalo
JOHANNESBURG - South Africa’s economy grew 2.2% in the third quarter after contracting by a revised 0.4% in the second and has now exited the recession, Statistics South Africa announced on Tuesday.
Risenga Maluleke, the Statistician-General of South Africa released the GDP data for South Africa and said that the South African economy grew by 2,2%. Maluleke said that the economic 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.
The agriculture sector which plunged 29.2 percent in the second quarter rebounded 6.5 in the quarter under review.
The primary sector however contracted by 5.4 percent in the third quarter driven by decreased mining production in platinum group metals, iron ore, gold and copper and nickel.
In contrast, the secondary sector grew by 5.4 percent with positive growth largely driven by manufacturing in basic iron and steel, metal products and machinery; petroleum and chemicals; wood and paper; and motor vehicles.
View the data released by StatsSA on Twitter below:
Secondary sector grew by 4,5% in Q3:2018 q/q. Positive growth was largely driven by #manufacturing in basic iron and steel, metal products and machinery; petroleum and chemicals; wood and paper; and motor vehicles. Q3:2018 #GDP =+2,2% q/q #StatsSApic.twitter.com/ba7zpjHkyC
The rand rose on Tuesday ahead of economic growth data release for the third quarter ended September, amid renewed demand for risk assets as the United States and China agreed to a temporary trade war truce.
At 8:50am the rand was 0.5% firmer at R13.6225 per dollar after closing at R13.6900 overnight in New York.
Economists expect the third quarter gross domestic product (GDP) data due today to show that South Africa’s moribund economy exited its first recession since 2009 in the quarter. The economy shrank 0.7 percent in the second quarter of the year, following a 2.6 percent contraction in the prior quarter.