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Stats SA: Growth in agriculture sector helps get SA out of recession

Statistics South Africa (Stats SA) says gross domestic product (GDP) for the third quarter expanded by 2.2% quarter on quarter.

Picture: EWN.

JOHANNESBURG - Increased growth in the agricultural sector has been listed as one of the main drivers that contributed to South Africa emerging from a technical recession.

Statistics South Africa (Stats SA) says gross domestic product (GDP) for the third quarter expanded by 2.2% quarter-on-quarter.

This is up from a revised contraction of 0.4% in the second quarter.

Agriculture expanded by 6.5%.

Stats SA says the drought impacted heavily on the country's growth in the first half of this year.

Chief economist at Econometrix Azar Jammine said: “The rise in agriculture by 6.5% is a stark contrast to the drop of nearly 30% that we had in the previous two quarters.”

He says the sector is recovering from a crippling drought.

“It suggests a normalisation of the agricultural sector.”

However, while agriculture is up, mining was down 8.8% and the construction sector was down 2.7%.

The financial sector grew 2.3% and manufacturing increased by 7.5%.

(Edited by Mihlali Ntsabo)