South Africa out of technical recession - Stats SA

South Africa’s Gross Domestic Product (GDP) rose by 2.2% in the third quarter, data from Statistics SA stated on Tuesday.

Growth of the total value of goods produced and services provided was driven mainly by the manufacturing sector, which expanded 7.5%, financial services, which expanded 2.3%, and the transport, storage and communication industry, which increased 5.7%.

The trade, catering and accommodation industry increased by 3.2%.

But the mining sector decreased by  8.8%, hindering overall growth. Construction decreased by 2.7% and contributed -0.1 of a percentage point. Electricity, gas and water decreased by 0.9%.

According to StatsSA, household final consumption expenditure (HFCE) increased by 1.6% in the third quarter, contributing 1.0 percentage point to total growth.

“The main contributors to growth in HFCE were expenditures on food and non-alcoholic beverages, furnishings, household equipment and maintenance.

“Imports of goods and services increased by 26.7%, driven largely by an increase in imports of machinery and electrical equipment, vehicles and transport equipment, chemical products and mineral products,” StatsSA added.

The country plunged into a technical recession in the first half of 2018 for the first time since the global financial crisis with two consecutive quarters of contraction.

Growth in the first half of the year was driven down by large contractions in the agricultural sector.