South Africa has done marginally better during the third quarter of this year, despite the many challenges the country has faced.
This is according to Statistics South Africa (Stats SA) which released a report earlier this week, stating that the county has come out of the technical recession with the economy growing by 2.2 percent in Q3 of 2018.
“We can inform the public that the economy has expanded by 2.2 percent in the third quarter of 2018, year on year growth was 1.1 percent and nine month on nine month was on 0.8 percent,” statistician general Risenga Maluleka told the media during a briefing this week.
The report states that the manufacturing sector has expanded by 7.5 percent, while the real estate, finance and business services grew by 2.3 percent.
Expenditure on real gross domestic product (GDP) grew by 2.3 percent, nominal GDP was estimated at R1.27 trillion in the third quarter, increasing by R40 billion compared to the second quarter.
“We have made revisions on second quarter of 2018, this previous growth rate at the time was negative 0.7 percent after looking at the revisions we are now sitting on 0.4 in the second quarter,” added Maluleka.
On the negative side, mining decreased by 8.8 percent, contributing a 0.7 percent of the GDP. The gross fixed capital formation declined by 5.1 percent with the main contributors to the drop associated with construction works, transport equipment, non-residential buildings and transfer costs.
Standard Bank also weighed in on the Stats SA report, adding their own research note that said real GDP sits at an average of 0.9% and 1.8% for 2018 and 2019, respectively.
“We are however, increasingly concerned about the downside risks to growth over the next few months. The South African Reserve Banks (SARB) leading indicator has not shown meaningful acceleration in months,” noted Standard Bank’s economists.
[Source – SA News]
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