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Economic Growth in South Africa, But Below Estimates

                                                            (Image source: flickr)

South Africa’s second quarter GDP figures was slightly below estimates. The South African economy expanded at a rate of 3% in the second quarter, which was 0.3% lower than what economist forecasted. Mining and farming were a drag on the economy. Mining was down 5.7%, while farming contracted by 3.7%. Manufacturing was a bright spot. In the first quarter, manufacturing was down 7.9%. But in the current period, Manufacturing jumped 11.5%. The manufacturing sector accounts for 15% of the nation’s economy.
Retail and
finance were also bright spots. Retail experienced a gain of 3.2% and finance climbed 3.5%. The collapse of the rand against the U.S. dollar is driving inflation above the central bank's target rate of 6%. Inflation in July was 6.3%. According to analyst, the central bank will continue to keep the benchmark interest rate at 5%.