2.5% GDP Growth | Business Post Nigeria

By Modupe Gbadeyanka A 2.5 percent expansion in the Gross Domestic Product (GDP) of South Africa in the second quarter of 2017 ensured that the country’s economy exited recession. In a report released on Tuesday by the country’s stats office revealed that the GDP growth in Q2 2017 is in contrast to revised decline of 0.6 percent in the previous three months. Today, Nigeria, which also slumped into recession, got out of economic decline after a GDP growth of 0.55 percent in the same period under review. Commenting on the South Africa’s exit from recession, Statistician General, Mr Pali Lehohla, explained that the primary industry contributed significantly to the growth numbers, with growth of 10.3 percent. According to him, growth in the agricultural sector by 33.6 percent contributed 0.7 of a percentage point to overall GDP growth, while mining grew 3.9 percent, contributing 0.3 of a percentage point to overall growth. The secondary sector grew 1.9 percent, with growth in the manufacturing industry up 1.5 percent. Electricity production increased 8.8 percent, while construction declined 0.5 percent. On the expenditure side of GDP, growth was recorded at 2.4 percent. Year-on-year expenditure was 0.8 percent and 0.5 percent for the six months Low demand for the country’s exports and political turmoil that’s caused instability have weighed on output by Africa’s most-industrialized economy. S&P Global Ratings and Fitch Ratings Ltd. cut the nation’s international debt to junk in April after President Jacob Zuma fired Pravin Gordhan as finance minister, with the changes roiling markets and battering business and consumer confidence. The central bank cut its benchmark rate for the first time in five years in July, citing concern about the growth outlook.

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