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South Africa’s Q2 GDP growth boosted by stronger manufacturing

by ChemOrbis Editorial Team - content@chemorbis.com
  • 07/09/2016 (13:49)
According to data released by South Africa’s statistics office, the country’s gross domestic product (GDP) climbed 3.3% year over year in the second quarter on the back of a jump in manufacturing activity and recovering mining sector. In the first quarter, the country’s economy had contracted by 1.2%.

South Africa’s manufacturing sector grew 8.1% which contributed 1 percentage point to overall growth with higher production for petroleum products, chemicals as well as cars and other transport equipment. The mining sector, meanwhile, expanded 11.8% following an 18.1% contraction in the previous quarter.

The stronger growth figures may strengthen the country’s central bank’s hand, the South African Reserve Bank, to increase its main repo rate beyond 7% to help fight persistently high inflation. However, recent political concerns stemming from an investigation into the country’s Finance Minister Mr. Gordhan blur the economic outlook for the second half of the year.
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