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GDP growth of 2.2% in third quarter sees SA get out of recession
Although the news is positive, there's still a long way to go to turn around the economy.
South African Rand Puzzle
Stats SA announced on Tuesday that South Africa saw growth for the first time in the first three quarters of the year so far, meaning the technical recession has ended.
The South African #economy grew by 2,2% in Q3:2018 compared with Q2:2018 #StatsSA https://t.co/uKaM5P1m74 pic.twitter.com/V4X031KWjl
— Stats SA (@StatsSA) December 4, 2018
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 #StatsSA pic.twitter.com/ba7zpjHkyC
— Stats SA (@StatsSA) December 4, 2018
#Economic growth in Q3:2018 driven by #manufacturing, #transport and #finance industries Q3:2018 #GDP =+2,2% q/q https://t.co/uKaM5P1m74 pic.twitter.com/imqHFqYUb5
— Stats SA (@StatsSA) December 4, 2018
In September, it was announced that South Africa officially entered a technical recession after real gross domestic product decreased by 0.7% in the second quarter of 2018.
GDP had contracted by 2.2% in quarter 1. A technical recession means two consecutive quarters of negative growth.
Even though the shrinking of the economy had slowed, agriculture, transport and trade had weighed down the country’s ability to bounce back.
The economic rebound was on the higher end of what economists had been predicting, with the main growth drivers being secondary industries (trade, transport, finance, government and personal services). The construction sector shrank by 2.7%, however.
Tertiary sector up by 2,6%. Q3:2018 #GDP =+2,2% q/q #StatsSA pic.twitter.com/cJhBhy55Dt
— Stats SA (@StatsSA) December 4, 2018
Agriculture grew by 6.5%, while mining slumped massively by 8.8%.
Household expenditure was slightly up.
Real growth for the year will probably come in at less than 1%.
Household final consumption expenditure up by 1,6% in Q3:2018 q/q. Q3:2018 #GDP =+2,2% q/q #StatsSA pic.twitter.com/F3v7DpXiiv
— Stats SA (@StatsSA) December 4, 2018
Expenditure on real #GDP grew by 2,3% in Q3:2018 q/q. Q3:2018 #GDP =+2,2% q/q #StatsSA pic.twitter.com/hVeTJZD4hC
— Stats SA (@StatsSA) December 4, 2018
Nominal #GDP estimated at R1,27 trillion for Q3: 2018, R40 billion more than in Q2: 2018. Q3:2018 #GDP =+2,2% q/q #StatsSA pic.twitter.com/FYEZFIMvnS
— Stats SA (@StatsSA) December 4, 2018
Primary sector contracted by 5,4% in Q3:2018 q/q driven by decreased #mining production in platinum group metals, iron ore, gold, copper & nickel. #Agriculture up by 6,5% in Q3:2018 q/q. Q3:2018 #GDP =+2,2% q/q #StatsSA pic.twitter.com/YgJjxyroVd
— Stats SA (@StatsSA) December 4, 2018
#Electricity, #Mining & #construction industries contracted during Q3: 2018 compared with previous quarter Q3:2018 #GDP =+2,2% q/q #StatsSA pic.twitter.com/hbcYsuCJ1u
— Stats SA (@StatsSA) December 4, 2018
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