CAPE TOWN: The finance, real estate and business services sectors – collectively the largest industry, accounting for 20% of the country’s gross domestic product (GDP) – grew by 2.9% q-o-q and 2.2% y-o-y during the second quarter. Mining, manufacturing and the rand helped boost South Africa’s economy for the first time in a while, giving some breathing room to a government being torn apart from within. Real exports increased by 0.2 and real imports decreased by 0.03. The economy expanded 0,6% from a year ago.
A lot of people looked at a growth of about 2 %, 3% was definitely a surprise. The industries that fell in the second quarter were agriculture, forestry and fishing; and electricity, gas, and water. The 3.3 percent GDP growth in the second quarter compares with a 1.2 percent contraction the previous three months, according to Statistics SA.
South Africa’s rand strengthened early on Tuesday, extending gains to a fourth consecutive session in thin trade after a holiday in the United States and ahead of local GDP data expected to show the economy avoided recession. In the second quarter, net exports of R5 billion were reported as exports of goods and services increased by 18.1 percent.
Political unease lingering with police position still unclear on possible arrest of Finance Minster Pravin Gordhan. This morning the rand was 0.6% firmer at 14.2950 per dollar at 8.50am versus an overnight close of 14.3800. The currency has lost nearly 6 percent against the dollar since the first reports on August 22 that Gordhan was being investigated on allegations of spying on politicians when he headed the Revenue Service agency between 1999 and 2009.
Compared to the corresponding quarter past year, the increase in GDP at current prices of €102.7 million is estimated to have been distributed into a €57.0 million increase in compensation of employees, a €39.7 million increase in gross operating surplus of enterprises, and a €6.0 million increase in net taxation on production and imports. The country risks a damaging credit ratings downgrade to junk status later this year. The strongest growth came from miscellaneous goods and services (8.9%).
