SA GDP grows 3.3% q/q, technical recession avoided

This is the fastest quarter-on-quarter rise in economic activity since the fourth quarter in 2014.

Picture: Christa Eybers/EWN

JOHANNESBURG - South Africa's economy has grown by 3.3 percent quarter-on-quarter according to estimates of real gross domestic product.

Statistician General Pali Lehohla released the Gross Domestic Product (GDP) estimates for the second quarter of 2016 in Pretoria this morning.

This is the fastest quarter-on-quarter rise in economic activity since the fourth quarter in 2014.

The country recorded a 1.2 percent decline in the first quarter of this year.

As many local economists had predicted, the country has avoided a technical recession.

Nedbank's Nicky Weimar says the growth is better than expected.

"The main reason for that is that finance, real estate and business services held up better than we thought it would.

"As for the rest of the economy, the growth occurred pretty much where everybody expected it to occur. They expected a rebound in mining, they expected a rebound in manufacturing."

Investment Solutions' Lesiba Mothatha says, "It's a much better than expected number and this is the second release where Stats SA has both the expenditure side of GDP counts and that from the value-added industry side.

"What's interesting to note is that the exports from the expenditure side has actually bounced back quite a bit."