South Africa GDP Grows Below Expectations

The South African economy expanded a seasonally adjusted annualized 0.6 percent in the second quarter of 2014, after contracting 0.6 percent in the first three months of the year. The agriculture, financial and transport sectors helped the country to avoid recession but a five-month strike in the platinum mines weighted on the growth.

On a quarter-on-quarter basis, the mining sector shrank for the second consecutive quarter by an annualized 9.4 percent, following a 24.7 percent fall in the previous period and hurt by lower gold and platinum production.

Manufacturing contracted 2.1 percent, after a 4.4 percent fall in the first quarter. Lower production was reported for: food, beverages and tobacco; petroleum, chemical products, rubber and plastic products; motor vehicles, parts and accessories and other transport; and glass and non-metallic mineral products.

Electricity, gas and water supply; and retail and wholesale trade sharank by 0.6 percent and 0.2 percent, respectively. 

The largest contributors to the quarter-on-quarter growth were reported for general government services (+2.9 percent) and the transport, storage and communication (+4.0 percent). Finance, real estate and business services rose by 1.5 percent boosted by banking activities and contributing 0.3 percent to growth. The agriculture sector advanced 4.9 percent while construction rose 5 percent. 

Year-on-year, the economy advanced 1 percent, lower than a 1.6 percent increase in the previous period. 

South Africa GDP Grows Below Expectations

Statistics South Africa | Joana Taborda |
8/26/2014 12:43:59 PM