South Africa Q4 GDP Growth Slows to 0.6%

The South African economy advanced an annualized 0.6 percent on quarter in the three months to December of 2015, easing from a 0.7 percent growth in the previous period while missing market consensus of 0.8 percent. Trade, mining and construction were the main drivers of growth while manufacturing and agriculture dragged the expansion down.

Activities in wholesale, retail, motor trade, catering and accommodation advanced 2.8 percent, following a 2.5 percent growth in Q3 and mining and quarrying expanded by 1.5 percent after contracting by 9.8 percent and 6.4 percent in the second and third quarters of 2015, respectively. Also, construction rose at a faster 1.1 percent following a 0.5 percent growth in the previous period. Finance, real estate and business services expansion slowed to 1.9 percent (+2.8 percent in Q3). 

In contrast, the manufacturing sector shrank an annualized 2.6 percent, after growing 6.2 percent in the third quarter and the agricultural sector contracted 14 percent, marking the fourth straight quarter of contraction.

Year-on-year, the economy advanced 0.6 percent, slowing from a 1 percent growth in the third quarter and hitting its lowest level since the 2009 recession.

Considering full 2015, the GDP grew 1.3 percent compared to a 1.4 percent expansion in 2014.

South Africa Q4 GDP Growth Slows to 0.6%

Statisitics South Africa | Joana Ferreira |
3/1/2016 10:20:47 AM