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South Africa’s economy recovered in the third quarter, data from Stats SA shows. (iStock)
South Africa’s third-quarter GDP increased 13.5% at a seasonally adjusted quarter-on-quarter rate, data from Stats SA shows.
The growth improvements were due in large part to the easing of the Covid-19 lockdown restrictions. Recoveries were recorded in all sectors, with the biggest positive contributors to growth being manufacturing, mining and trade.
There was also a rebound in household consumption and exports that supported companies, Stats SA noted.
Marginal increases were reported for public spending on government consumption. Gross fixed capital formation also recovered, by more than a quarter.
“The increase in economic activity in the third quarter may seem impressive, but it comes from the very low base recorded in the second quarter. South African industries still have a long way to go before reaching the production levels seen before the pandemic “, Stats SA said in a statement.
Before the launch of Stats SA on Tuesday morning, economists had expected a rebound from the dismal performance of the previous quarter, when SA’s GDP plummeted due to the impact of the hard lockdown, when economic activity was largely reduced to goods and essential services for five weeks.
In the second quarter, GDP contracted 16.4% quarter-on-quarter or 51% quarter-on-quarter annualized.
The -51% figure caused some confusion when data for the last quarter was released, but as economists explained to Fin24 at the time, it did not mean that the economy would contract by half, but rather that GDP would be cut in half if the contraction continued at the same rate. for a full year.
As the chief director of national accounts for Stats SA, Michael Manamela, previously told Fin24, the annualized rate is reliable if the economy is stable. However, unique events such as labor disputes and the Covid-19 lockdown introduce volatility in the annualized rate.
On an annualized basis, growth for the third quarter increased by 66.1%, in line with economists’ expectations.
*More to follow.
