Our website use cookies to improve and personalize your experience and to display advertisements(if any). Our website may also include cookies from third parties like Google Adsense, Google Analytics, Youtube. By using the website, you consent to the use of cookies. We have updated our Privacy Policy. Please click on the button to check our Privacy Policy.

South Africa’s economy reaches pre-pandemic size in strong Q1

ALEXANDER WINNING

SOUTH AFRICA’S economy grew more than expected in the first quarter, recovering to the level it was before the COVID-19 pandemic thanks to a strong performance by sectors like manufacturing, data from the statistics agency showed.

The growth trajectory will offer some comfort to South African President Cyril Ramaphosa, who has been under pressure to lift the growth rate.

The gross domestic product grew 1.9% in the first quarter in quarter-on-quarter seasonally adjusted terms and by 3.0% year-on-year unadjusted in the first three months of the year.

Economists had predicted 1.2% quarter-on-quarter growth and a 1.7% year-on-year expansion.

Ramaphosa promised sweeping reforms after he took office in 2018, but COVID and persistent electricity cuts have constrained activity and unemployment hit a record high above 35% last year.

Statistics South Africa said manufacturing grew 4.9% quarter-on-quarter, while the trade, catering and accommodation category expanded 3.1% and agriculture, forestry and fishing 0.8%. Mining and quarrying contracted 1.1%.

GDP was 1.15 trillion rand ($75 billion) in the first quarter of 2022, about the same as in the first quarter of 2020, a presentation showed.

The rand was slightly stronger after the figures were released, trading up 0.4% on the day at 15.3800 versus the dollar at 1003 GMT.

By The African Mirror

Related Posts