South Africa’s economy expands by 3.1%

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The South African Gross Domestic Product (GPD) grew more than expected in the second quarter by 3.1% due to a recovery in mining and manufacturing sectors.

The country’s statistics official data showed on Tuesday that the growth in the three months to June was 3.1%, after a revised contraction of 3.1% in the first quarter, Statistics South Africa said.

However, Economists polled by Reuters had predicted an expansion of 2.4% for the quarter.

The second-quarter growth was the highest since the fourth quarter of 2017. Year-on year GDP growth was 0.9% compared with zero previously.

The data further showed mining output grew by 14.4% in the second quarter, after declining by 10.8% previously. Manufacturing output rose 2.1%, rebounding after declining 8.8% in the first quarter.

“There was a strong rebound in iron prices in the months leading to this quarter … and remember with mining in the first quarter there were challenges with electricity supply and those have eased a bit,” said Mike Manamela, chief director for national accounts at the statistics office.

Peace PIAK