Some economists believe modest growth seen at end of 2024 signals gradual economic recovery
The country’s GDP rose by a marginal 0.6% in the final three months of last year after a 0.1% contraction in quarter 3.
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JOHANNESBURG - Some economists believe the modest economic growth seen at the end of 2024 signals the start of a gradual economic recovery.
The country’s GDP rose by a marginal 0.6% in the final three months of last year after a 0.1% contraction in quarter 3.
READ: SA's economy ticks up by 0.6% in third quarter of 2024
Agriculture and trade are among the industries that spurred growth while heavyweights mining and manufacturing dragged growth.
The economy grew by an overall 0.6% year-on-year compared to the 0.7% seen in 2023.
This is the slowest pace in almost half a decade.
Although slightly weaker than expected, Stats SA’s figures show economic growth across industries and various sectors.
Deputy Director General of Economic Statistics at Stats SA Joe de Beer: “Our estimates for agriculture was an expansion of over 17% which gave us 0.4 percentage point. We also saw strong growth from finance and business and then trade and the retail wholesale motor trade, which made a contribution of 0.2 percentage points.”
Economists from Nedbank say the economy is set to gain moderate momentum throughout 2025.
The boost will likely come from continued improvements in consumer demand as inflation remains subdued and interest rates ease a bit more, bolstering real incomes and lowering borrowing costs.