South Africa Annual GDP Growth Beats Expectations



The South African economy expanded 0.7 percent year-on-year in the last three months of 2016, the same as in the previous quarter and above market expectations of 0.6 percent. A recovery in agriculture and stronger growth in trade, finance, real estate, business and government services drove the expansion, offsetting contraction in mining, manufacturing and utilities.

Agriculture rose 2.4 percent, first expansion in nearly two years, following a 5.2 percent drop in the previous period. In addition, stronger growth was reported in trade, catering and accommodation (1.1 percent compared to 0.7 percent in Q3); finance, real estate and business services (1.8 percent compared to 1.7 percent) and government services (2.2 percent compared to 1.1 percent). 

In contrast, expansion slowed in construction (0.2 percent compared to 1 percent in Q3) and personal services (1.1 percent compared to 1.5 percent) while contraction was reported in mining (-3.1 percent compared to -0.1 percent ), utilities (-3.2 percent compared to -2.1 percent) and manufacturing (-0.7 percent compared to +0.5 percent). 

On a quarterly basis, the GDP contracted an annualized 0.3 percent, compared to expectations of a 0.5 percent growth. 

Considering full 2016, the economy advanced a meager 0.3 percent, below a 1.3 percent expansion in 2015, mainly due to contraction in mining (-4.7 percent compared to +3.9 percent in 2015) and agriculture (-7.8 percent compared to -6.1 percent in 2015). In contrast, both manufacturing and construction increased 0.7 percent each (-0.2 percent and +1.7 percent respectively in 2015). Growth was mainly driven by finance, real estate and business services (1.9 percent compared to 2.8 percent in 2015); general government services (1.4 percent compared to 0.8 percent in 2015) and wholesale, retail and motor trade; catering and accommodation industry (1.2 percent compared to 1.4 percent in 2015). 

South Africa Annual GDP Growth Beats Expectations


Statistics South Africa | Joana Taborda | joana.taborda@tradingeconomics.com
3/7/2017 12:57:30 PM