South Africa GDP Advances 0.7% in Q3

The South African economy expanded an annualized 0.7 percent on quarter in the three months to September of 2015, recovering from a 1.3 percent contraction in the previous period and boosted by a rebound in manufacturing and wholesale and retail trade. However, figures came below market expectations of a 1.1 percent growth and lower than a 2.1 percent expansion seen a year earlier as the drop in commodity prices keeps dragging the mining sector down.

The manufacturing sector expanded for the first time in three quarters by an annualized 6.2 percent, after shrinking by 2.4 percent and 6.3 percent in the first and second quarter respectively. Production increased for petroleum, chemical products, rubber and plastic products, wood and wood products, paper, publishing and printing and food and beverages.

Activities in wholesale, retail, motor trade, catering and accommodation went up 2.5 percent, following a 0.6 percent fall in the second quarter and finance, real estate and business services increased at a faster 2.8 percent (2.6 percent in the second quarter), due to higher activities in financial markets and the banking sector. 

In contrast, mining output shrank for the second straight period, down 9.8 percent and hurt by lower production of coal, other metal ores (including platinum) and diamonds. The agricultural sector contracted 12.6 percent, third straight quarter of fall, due to lower production of field crops.

Year-on-year, the economy expanded 1 percent, slowing from a 1.3 percent increase in the second quarter of the year and the lowest since the 2009 recession. 

South Africa GDP Advances 0.7% in Q3

Statistics South Africa | Joana Taborda |
11/24/2015 10:08:45 AM