Economy showing some green shoots after Q3 GDP contraction, says economist

JOHANNESBURG - Some economists believe it's too early to write off the country's economy following an unexpected contraction in GDP in the third quarter.

GDP came in far below expectations when Stats SA released the latest figures on Tuesday.

The economy shrank by 0.3% in the third quarter after growing by the same amount in the previous quarter.

Stats SA said that agriculture was the biggest drag on growth, with decreased economic activity reported for field crops.

But chief economist at Standard Bank, Goolam Ballim, said that other sectors of the economy were still showing some green shoots.

"The agricultural sector is typically a swing element – sometimes it can inject a substantial amount of growth and sometimes it does the complete opposite. The non-farming economy grew nearly 0.5% and I think therein lies some solace."