Eight of the 10 industries tracked through South Africa Statistics recorded an expansion in the July-September period. The agricultural sector was the main contributor, which was attributed to the smart climate and an excellent harvest.
In the current quarter, the South African economy went through 0. 7% compared to the previous quarter.
President Cyril Ramaphosa, who has staked his reputation on emerging expansion rates since they came into force in 2018 but has struggled to make much progress, said an economic plan designed during Covid-19 was bearing fruit.
“Given the state of our economy, we have no room for complacency, but we do have room to recognize that our economic recovery is underway,” said Ramaphosa, who won the presidency of the ruling party’s national executive on Monday after a scandal threatened to see him ousted.
Analysts had expected an expansion of 0. 6% quarter-on-quarter. Some doubt it will remain as physically powerful as in the third quarter given limitations such as record power cuts and external conditions.
by Kopano Gumbi November 29, 2022
“Today’s impression is cause for celebration, but we want to be aware of the difficult situations of expansion globally and locally,” said Sanisha Packirisamy, an economist at financial organization Momentum, adding that she was concerned about the strength of exports next year.
Gross domestic product (GDP) grew by 4. 1% year-on-year in the third quarter, also higher than the year-on-year expansion of 0. 2% in the current quarter and forecasts for expansion of 2. 8%.
Jason Tuvey, an economist at Capital Economics, said the result is stronger even than the top positive forecasts and would raise its 2022 expansion forecast from 1. 5% to between 2. 5% and 3%.
Last month, the South African Reserve Bank forecast 1. 8% expansion this year. Stats SA said GDP grew 2. 3% during the first nine months of 2022 from the same time last year.
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