South Africa's GDP growth remains sluggish despite signs of recovery

SOUTH Africa’s economy could still grow less than 1% this year despite optimism for a slight upsurge after gross domestic product (GDP) posted its fourth straight gain in the three months to September.

- SIPHELELE DLUDLA

THE green shoots in the economy include the improvement in freight passage at Transnet, the end of rolling blackouts and the country's removal from the grey list and an upgrade by S&P ratings agency, all of which will help boost sentiment and attract investment, while the global economy has proved more resilient than previously anticipated. | LEON LESTRADE Independent Newspapers

Data released by Statistics South Africa (Stats SA) shows that real GDP grew by 0.5% in the third quarter, slower than the revised 0.9% growth in the second quarter.

Stats SA’s chief director for national accounts, Dr Bokang Vumbuka-ni-Lepolesa, said the expansion was quite broad-based, with nine over 10 industries growing during this period.

“The trade, mining and finance industries as well as government services were the most significant positive contributors to overall growth. Trade increased by 1% with positive gains in wholesale, retail, motor trade, accommodation and food and beverages,’ she said.

“Mining output increased by 2.3% driven pre ormunantly by platinum group metals with support from manganese ore, coal, chromium ore and copper. Electricity, gas and water was the only industry that disappointed in the third quarter, shrinking by 2.5%. This was due to lower electricity production and consumption.”