South Africa’s economy on the rise after strong second quarter

South Africa’s economy on the rise after strong second quarter

Zuko Komisa

• South Africa’s economy has rebounded, with GDP increasing by 0.8% in the second quarter, a significant jump from the 0.1% growth in the first quarter.
• The manufacturing, trade, and mining sectors were the main drivers of this growth, all making substantial contributions to the economic uptick.
• However, the transport and construction industries experienced a downturn, acting as a drag on the overall positive economic performance.

South Africa’s economy has shown a notable upswing, with new figures revealing a 0.8% increase in gross domestic product (GDP) during the second quarter of the year.

This marks a significant improvement from the modest 0.1% growth seen in the first quarter, according to data released by Statistics South Africa.

The manufacturing sector was a key driver of this growth, expanding by 1.8% and adding 0.2 percentage points to the overall GDP.

Seven out of ten manufacturing divisions reported positive growth, with particularly strong performances from the petroleum, chemicals, rubber, and plastics sector, as well as the motor vehicles and transport equipment division.

The trade, catering, and accommodation industries also performed well, growing by 1.7% and contributing another 0.2 percentage points to the economy.

This was largely due to increased activity in retail and motor trade, as well as in the food, beverage, and accommodation sectors.

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