South Africa Economy Returns to Growth in Q3


The South African economy grew a seasonally adjusted annualized 2.2 percent on quarter in the three months to September of 2018, following a downwardly revised 0.4 percent contraction in the previous period and beating market expectations of a 1.6 percent expansion. It was the strongest growth rate since the last quarter of 2017 and after shrinking for two consecutive periods, mainly driven by manufacturing, transport and communication and real state and business services.

The agriculture, forestry and fishing industry advanced 6.5 percent, after contracting 31.9 percent in the second quarter of the year, mostly due to higher production of field crops, horticultural and animal products.

Manufacturing grew by 7.5 percent, following a 0.6 percent expansion, driven by production of basic iron and steel, metal products and machinery, wood and paper, petroleum products and motor vehicles. 

Transportation, storage and communication rose by 5.7 percent, compared to a 4.9 percent decline in the previous period, boosted by freight transportation.

The finance, real estate and business services sector increased by 2.3 percent, after expanding 1.9 percent in Q2, mainly due to financial intermediation and insurance and real estate. Additionally, general government services rebounded by 1.5 percent, following a 0.4 percent drop.

On the other hand, the main negative contributions came from mining and quarrying (-8.8 percent compared to 8.1 percent in Q2); construction (-2.7 percent compread to 2.1 percent) and utilities (-0.9 percent compared to 2.2 percent).

Year-on-year, the economy expanded 1.1 percent year-on-year in the third quarter of 2018, after a 0.4 percent growth in the prior period and above market consensus of a 0.5 percent expansion. It was the strongest growth rate since the last quarter of 2017. 

South Africa Economy Returns to Growth in Q3


Statistics South Africa | Stefanie Moya | stefanie.moya@tradingeconomics.com
12/4/2018 5:12:04 PM