SA comes out of technical recession with economy growing by 2.2% in Q3 2018
“We can inform the public that the economy has expanded by 2.2% in the third quarter of 2018. Year-on-year growth was 1.1% and nine-month on nine-month it was at 0.8%,” said Statistician General Risenga Maluleke.
"We can inform the public that the economy has expanded by 2.2% in the third quarter of 2018. Year-on-year growth was 1.1% and nine-month on nine-month it was at 0.8%," said Statistician General Risenga Maluleke.
"We made revisions on the second quarter of 2018. The previous growth rate at the time was a negative 0.7% after looking at the revisions we are now sitting on 0.4% in the second quarter," he said at a media briefing on Tuesday.
Third quarter growth -- which was expected by economists -- followed on two consecutive quarters of negative growth.
Nedbank economist's expected the economy to improve to 2.2% mainly on the back of the low base set in the first and second quarters.
Statistics South Africa (Stats SA) said the rise in GDP numbers as large as a result of increased economic activity in manufacturing, transport and communication as well as finance, real estate and business services.
The manufacturing sector expanded by 7.5% while finance, real estate and business services increased by 2.3%. Increased economic activity was reported for financial intermediation, insurance and auxiliary activities among others.
Meanwhile, mining decreased by 8.8% contributing -0.7% of a percentage point to GDP growth.
Meanwhile, nominal GDP was estimated at R1.27 trillion in the third quarter increased by R40 billion from the second quarter.
"We are, however, increasingly concerned about the downside risks to growth over the next few months. The South African Reserve Bank's (SARB's) leading indicator has not shown a meaningful acceleration in months," said Standard Bank economists.
Gross fixed capital formation decreased by 5.1% with the main contributors to the decline were activities associated with construction works, transport equipment, non-residential buildings and transfer costs.
(With Inputs from South African Government Press Release)