On Now
Weekdays 15:00 - 18:00
The Joyride Nico, Nikki and JayBee
Show Background
NEXT: 18:00 - 19:00 OFM Business Hour with Olebogeng
Listen Live Streams

South Africa

SA economy expands 3.1 pct in Q2

───   12:27 Tue, 03 Sep 2019

SA economy expands 3.1 pct in Q2 | News Article

South Africa's economy grew by 3.1% in the second quarter of 2019 after contracting by a revised 3.1% in the first three months, helped by the mining sector which recorded its strongest growth since 2016.


This was confirmed by the national statistics agency on Tuesday. Statistics South Africa said mining was up 14.4%, followed by the finance sector which added 4.1% and trade which gained 3.9% during the quarter.

Agriculture, however, fell by 4.2% on the back of the lower production of field crops and horticultural products. This was its second straight quarter of shrinking.

"Overall, the growth in the first half of the year was up by 0.4%," Stats SA chief director for national accounts, Michael Manamela, said.

The aversion of a technical recession - which occurs when GDP contracts for two consecutive quarters - is a ray of light for an economy that has struggled to grow meaningfully since slumping into a full-year recession during a 2008/9 global crisis. 

Critics partly blame South Africa's economic woes on nearly a decade of mismanagement under former president Jacob Zuma, who was forced to step down in 2018 before the end of his second five-year term.

Last month the National Treasury released for public comment an economic blueprint to boost growth and create jobs and bring unemployment down from 29% of the labour force.

The document details structural reforms that could reverse the downward trend in the country's growth potential and competitiveness, raise annual economic growth by three percentage points and create one million jobs.

The Treasury expects GDP growth of 1.5% in 2019 compared with 0.8% last year and 1.4% in 2017.


ANA


@ 2026 OFM - All rights reserved Disclaimer | Privacy Policy | We Use Cookies - OFM is a division of Central Media Group (PTY) LTD.