South African Economy Grows 0.6% in Q4, 1.3% in 2015

The South African economy advanced 0.6 percent year-on-year in the last quarter of 2015, easing from a 1 percent expansion in the previous period but beating market expectations of a 0.4 percent growth. It was the lowest growth rate since the 2009 recession due to a slowdown in finance and construction while manufacturing, mining and agriculture contracted.

Compared to the fourth quarter of 2014, finance, real estate and business services expansion slowed to 2.6 percent (+3.1 percent in Q3) and construction grew by 1.1 percent (+1.7 percent in Q3). Also, activities in wholesale, retail, motor trade, catering and accommodation advanced 1.7 percent, following a 1.2 percent growth in Q3.

In contrast, the manufacturing sector shrank 0.8 percent (+1.4 percent in Q3), the mining and quarrying sector contracted 0.6 percent (+1.4 percent in Q3) and agriculture output fell for the third straight quarter by 14.1 percent (-16.2 percent in Q3).

On a quarterly basis, the economy advanced 0.6 percent, slowing from a 0.7 percent growth in the third quarter.

Considering full 2015, the GDP grew 1.3 percent compared to a 1.4 percent expansion in 2014, as the main contributors were finance, real estate and business services (0.6 of a percentage point), the mining and quarrying industry and the wholesale, retail and motor trade; catering and accommodation industry (each contributing 0.2 of a percentage point). While, a negative contribution was recorded by the agriculture, forestry and fishing industry (-0.2 of a percentage point).

South African Economy Grows 0.6% in Q4, 1.3% in 2015

Statisitics South Africa | Joana Ferreira |
3/1/2016 10:35:53 AM