South Africa narrowly avoids recession, reports Q3 growth of 0.7%

By Matthew le Cordeur

Cape Town –South Africa’s economy grew marginally by 0.7% in the third quarter of 2015, Statistics SA announced on Tuesday.

The gross domestic product (GDP) announcement comes after a second-quarter contraction of 1.3%.

Eskoms-Medupi-power-plant

The mining (-9.8), electricity (-8%) and agriculture (-12.6%) sectors contracted in the third quarter, which has been expected due to lower commodity demand (mining and electricity) and the drought that has affected the country (agriculture).

The manufacturing (6.2%), finance (2.8%) and trade (2.5%) sectors grew in the third quarter.

GDP growth year-on-year was at 1% and 1.5% for the first nine months.

In the third quarter, the primary sector (agriculture and mining) pulled down growth forecasts with a 10.4% contraction, while the secondary sector (electricity and construction) grew by 6.2% and the tertiary sector (transport, finance and trade) grew by 1.9%.

Fin24

Source: http://www.fin24.com/Economy/gdp-grows-marginally-by-07-in-third-quarter-20151124