{"id":11817,"date":"2018-12-04T11:38:01","date_gmt":"2018-12-04T09:38:01","guid":{"rendered":"http:\/\/www.statssa.gov.za\/?p=11817"},"modified":"2018-12-04T11:38:01","modified_gmt":"2018-12-04T09:38:01","slug":"the-recession-ends-as-gdp-climbs-by-22","status":"publish","type":"post","link":"https:\/\/www.statssa.gov.za\/?p=11817","title":{"rendered":"The recession ends as GDP climbs by 2,2%"},"content":{"rendered":"

The South African economy grew by 2,2% quarter-on-quarter (seasonally adjusted and annualised) in the third quarter of 2018, bringing to an end the country\u2019s second recession since 1994. Higher contributions to growth in a number of industries \u2013 most notably in manufacturing, transport as well as finance and business services \u2013 were enough to lift economic growth back into positive territory.<\/p>\n

The rise in economic activity in the third quarter follows two consecutive quarters of negative growth, which is a widely recognised indicator of recession. The economy slumped by 2,6% in the first quarter of 2018 and a further 0,4%1<\/sup> in the second quarter.<\/p>\n

Manufacturing was the main driver of positive growth in the third quarter. The industry grew by 7,5%2<\/sup>, largely as a result of increased production of basic iron and steel, metal products and machinery; wood and paper; petroleum products; and motor vehicles. This is the largest jump in manufacturing production since the second quarter of 2016.<\/p>\n

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After contracting in the second quarter, the transport, storage and communication industry rebounded by 5,7% in the third quarter, making it the second largest contributor to overall growth. An increase in freight transportation underpinned the rise in activity. This is the largest quarter-on-quarter increase for transport, storage and communication since the third quarter of 2007.<\/p>\n

The finance, real estate and business services industry was another strong supporter of GDP growth, edging up by 2,3%. It was specifically the activities related to financial intermediation, insurance and real estate which performed better in the third quarter, contributing to the rise.<\/p>\n

The agriculture industry bounced back from two consecutive quarters of negative growth to record a 6,5% rise in the third quarter. Strong growth in the production of field crops, horticultural cultivation and animal products contributed to the rebound.<\/p>\n

The mining industry was the biggest detractor from economic growth, declining by 8,8%. Lower production levels were recorded for platinum group metals, iron ore, gold, copper and nickel.<\/p>\n

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Key facts from the third quarter 2018 GDP release:<\/p>\n