South Africa dodges recession as economy grows three-point-three percent
Written by Taiwo Adediran on September 6, 2016
South Africa avoided slipping into recession today with official statistics showing the economy grew three-point-three percent in the second quarter after a one-point-two percent contraction in the previous quarter.
The annualized growth rate was mainly spurred by the manufacturing sector which expanded by eight-point-one percent, as well as the real estate and transport sectors that both increased at two-point-nine percent.
Statistics South Africa said today that on a year-on-year basis, the economy grew zero point six percent versus a zero point one percent contraction in the first quarter.
The agency however warned that the jump in quarterly growth is also due to the sharp contraction in the previous quarter, and the more realistic measure is to look at the first six months of 2016, which showed growth at zero point three percent.