South Africa's economic growth rises in Q2, escapes second recession

Economic growth in South Africa rose during the second quarter of this year, escaping a second recession in seven years as a rebound in mining and factory output help spur the ailing economy.

The country’s gross domestic product rose an annualized 3.3 percent in the second quarter, compared with a 1.2 percent contraction the previous three months, data released by Statistics South Africa showed Tuesday in the capital, Pretoria. The median of 19 economist estimates compiled by Bloomberg called for 2.6 percent growth. The economy expanded 0.6 percent from a year ago.

Manufacturing, which accounts for about 13 percent of the economy, expanded an annualized 8.1 percent and mining output increased by 11.8 percent, reports released by the statistics office added. Agriculture contracted by an annualized 0.8 percent, the sixth consecutive quarter of decline.

Further, mining and quarrying recovered in the second quarter, increasing by 11.8 percent and contributing 0.8 of a percentage point to GDP growth. Finance, real estate and business services increased by 2.9 percent and contributed 0,6 of a percentage point to GDP growth. However, agriculture, forestry & fishing and electricity, gas & water sectors witnessed contraction.

Meanwhile, in the second quarter net exports of R5 billion were reported. Exports of goods and services increased 18.1 percent. Exports of precious metals and transport equipment were largely responsible for the increase. Imports of goods and services decreased 5.1 percent, while imports of machinery and electrical equipment largely accounted for a decline.