Gross domestic product rose by an annualized 2.2 percent in the three months through September compared with a revised 0.4 percent contraction in the prior quarter, Statistics South Africa said Tuesday in the capital, Pretoria. The median estimate of economists surveyed by Bloomberg was for growth of 1.9 percent.
The biggest drivers of quarterly growth were increases in manufacturing output, which rose 7.5 percent, and agriculture, which surged 6.5 percent. Despite the rebound, the underlying economy remains weak, with the central bank and the National Treasury forecasting annual growth of less than 1 percent for the year. The economy hasn’t grown by more than 2 percent a year since 2013 and is struggling to gain momentum despite political changes, which boosted investor confidence. Cyril Ramaphosa’s ascent to power — first as leader of the ruling African National Congress in December and as President in February — bolstered sentiment and the rand following Jacob Zuma’s scandal-ridden tenure of almost nine years, but indexes show confidence has waned as businesses seek real reforms. The economy expanded 1.1 percent from a year earlier.
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.
