SA economy grew by 3.1% in Q2 - Stats SA

South Africa has avoided a recession as the economy grew by 3.1% in the second quarter of 2019, data released by Statistics SA showed.

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JOHANNESBURG - South Africa has avoided a recession as the economy grew by 3.1% in the second quarter of 2019, data released by Statistics SA shows.

This was in stark contrast to the alarming 3.2% decline recorded in the first quarter of 2019.

Mining, finance, trade and government services were the main drivers of the growth.

Chief director for national accounts at Statistics SA Michael Manamela explains: "We saw the mining sector being one of the biggest contributors - it grew by 14.4%. The second biggest contributor was the financial services sector which was up 4.1%."

Had the growth contracted for a second consecutive quarter, the South African economy would have entered a recession.

While the overall South African economy remained weak, Stats SA said improved performance in key industries such as mining and trade helped pull its performance from the doldrums.

The second-quarter rebound in performance was also half a percentage point better than projected by leading economists.

The strongest performer in the second quarter was the mining sector which grew 14.4% driven by iron ore, manganese, and coal production. Finance, real estate, and business services grew by 4.1%.

Stats SA also recorded year-on-year growth at 0.9% while the six-month growth is 0.4%.

Despite the recovery from the negative performance in the first quarter, the Reserve Bank revised its annual GDP forecast to 0.6% from 1%.