GDP: Economy sees growth of 0.4%, thanks to finance, real estate sectors

JOHANNESBURG - The South African economy has rebounded, following growth of 0.4% in the second quarter of the year.

This is an improvement following the zero growth seen in the first three months.

In addition to the finance industry boosting GDP, a rebound in manufacturing has also helped to keep the economy from contracting again.

Stats SA has revised the quarter 1 GDP figures from a 0.1% contraction to a zero percent growth.

This means the last time the economy contracted was in the third quarter of last year.

Stats SA said that the finance, manufacturing, trade, and electricity industries drove most of the economy’s momentum on the production side.

Manufacturing, which has been hobbled by the energy and logistics crisis, turned positive after shrinking in the first quarter.

The recovery comes at a time when the country has seen significant reprieve in load shedding.

On the expenditure side, household consumption is among drivers that favoured growth.

Stats SA said consumers increased their spending across a number of product categories.