SA GDP below expectations
Quarter-on-quarter growth was just 0,7 percent from the second quarter's revised 3,2 percent.
JOHANNESBURG - Statistics South Africa on Tuesday said gross domestic product (GDP) figures show only 1,8 percent growth year-on-year in the third quarter from a revised 2,3 percent in the previous three months.
Tuesday's results also showed that quarter-on-quarter growth was just 0,7 percent, a disappointing low following the revised 3,2 percent in the second quarter.
The figures came in somewhat lower than expected after a consensus forecast from Reuters predicted the economy would grow by 2,1 percent year-on-year.
They also expected quarter-on-quarter growth to be 1,2 percent, 0,5 higher than the figure.
Construction went up 2,1 percent for the quarter, agriculture was up 3,6 percent and mining increased 11,4 percent.
But the manufacturing sector, likely reeling from the lengthy automotive strike which ended last month, was down 6,6 percent.
Industrial Development Corporation Chief Economist Lumkile Mondi says the results are disappointing.
"We were expecting a much better figure than this one. Things are really bad. It really indicates the need for us to take action."
He says social problems such as poor education are a major concern for the economy.
"We've got labour market inflexibility and in a market such as ours, where unemployment is so high, we need to do something about this."
Stats SA says Gauteng remains the greatest player in the economy with a 34,7 percent contribution, followed by KwaZulu-Natal with 15,8 percent and the Western Cape at 14,0 percent.
All three provinces showed a small drop in their overall contribution due to increases from Mpumalanga and Limpopo.
Click here for Stats SA's full report.