Economy out of technical recession
Good news for our economy, especially the working class citizens as the 'Randela' strengthens.
South Africa’s economic gross domestic production (GDP) has grown by 2,5 per cent, resulting in the country jumping out of the technical recession.
This is thanks to the agriculture, fishing and forestry sectors which sprouted by 33,6 per cent – giving the GDP a 0,7 per cent improvement.
The drastic drought that challenged the agriculture sector had a negative impact but it is regaining its profits. Estates and business services have also improved by 2,5 per cent, contributing 0,5 per cent to the GDP.
The tourism industry, accommodation and catering in particular, improved by 0,6 per cent in the retail and wholesale sectors. Mining had a 3,9 per cent increase, adding 0,3 per cent to the GDP growth.
The economy underwent a technical recession following the 0,3 per cent decrease in the last quarter of 2016 and the first quarter of this year. There is some hope that this shift in the economy indicates a significant drop for the country’s hard-pressed economic status.
Chief economist of Standard Chartered Bank, Razia Khan, said the second quarter’s GDP data revealed some strength in the economy.
“The boost in the economy is unlikely to be enough to discourage the Reserve Bank from further easing in the support of the economic recovery,” said Khan.
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