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South African economy avoids recession

South Africa has avoided being tipped into recession after second-quarter GDP figures showed the economy grew by 0.6% during the April-to-June period.

The economy had contracted by 0.6% in the first quarter. A platinum strike in the country was blamed for the poor performance in the first three months.

South Africa was last in recession in 2008 amid the global financial crisis.

By 2011 it had made a substantial recovery, but there have been worries recently that it would slip back.

Africa’s most advanced economy, and the continent’s second largest, grew by 1% on an unadjusted year-on-year basis in the quarter, against growth of 1.6% in the previous quarter.

South Africa’s agriculture and financial sectors grew 4.9% and 1.5% respectively in the second quarter.

Meanwhile, the under-pressure mining sector contracted 9.4% quarter-on-quarter in the second three months of the year, and manufacturing contracted by 2.1%.

The wholesale and retail trade sales shrank by 0.2%, while construction expanded by 5%.

 

Source – BBC News