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South African economy grows 3.3% in second quarter

South Africa’s economy grew 3.3% quarter-on-quarter and 0.6% year-on-year in the second quater of 2016.

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Despite doom-and-gloom predictions by economists, data released by Statistics SA actually had some good news for South Africa’s economy on Tuesday. This comes South Africa regained its place as the continent’s biggest economy recently.

Fin24 reports:

South Africa’s gross domestic product (GDP) grew by 3.3% quarter-on-quarter in the second quarter of 2016, better than expected and after contracting by 1.2% in the previous quarter. The year-on-year growth was 0.6%.

According to Mike de Beer, who announced the growth on behalf of Statistician General Pali Lehohla, it was the “first time in a long while” that the country’s economy had seen positive growth in all three large sectors.

The primary sector showed a growth rate of 8.8%, with mining up by 11.8% and agriculture down 0.8%. The secondary sector also grew by 5.3% with manufacturing (8.15%) showing the biggest growth.

Construction was also up by 0.1% while electricity down by 1.8%. There were notable increases in the petroleum and motor vehicle manufacturing divisions, according to Fin24.

In the tertiary sector, which grew by 2%, finance and finance both grew by 2.9%. Trade was up 1.4%, government up 1.2% and personal services up 0.8%.

Manufacturing’s growth is largely down to the higher production in petroleum and chemical products, rubber and plastic products and motor vehicles, parts and accessories and other transport equipment.

Fin24 adds:

Nominal GDP is estimated at just more than R1trn. The finance sector is the biggest contributor followed by government, trade and manufacturing. About R1 in R5 comes from the financial sector.

Real expenditure on GDP increased by 3.4% in the second quarter on a q/q basis. It was mostly export driven. Government consumption expenditure increased by 1.3%. There were declines in gross fixed capital formation and imports of goods and services.


Exports increased by 18% while imports decreased by 5.1%. De Beer said the growth rate tells the same story as the last 3 or 4 years in terms of GDP growth.