South Africa's economy has moved out of recession, recording slight positive growth for the third quarter of 2009, Statistics SA said on Tuesday. The seasonally adjusted real gross domestic product (GDP) at market prices for the third quarter of 2009 increased by an annualised rate of 0.9 percent compared with the second quarter of 2009, the Pretoria based agency said.
This followed decreases of real annualised economic growth rates of a revised 7.4 percent and a revised 2.8 percent in the first and second quarters of 2009, compared with the fourth quarter of 2008 and the first quarter of 2009 respectively.
However, Statistics SA 's executive manager of national accounts Joe de Beer sounded a word of caution regarding the latest GDP figure. "GDP has returned to positive growth, but the underlying trend is still negative," he said. The main contributors to the growth in economic activity for the third quarter of this year were the manufacturing industry, general government services, construction industry and personal services.
Negative contributions by other industries included the finance, real estate and business services and mining and quarrying industry, agriculture, forestry and fishing and wholesale and retail trade sales and restaurants industry. Commenting on the data, economist Mike Schussler said he was relieved that the recession had ended "although for many people it may not feel like it".
He said many parts of the private sector, such as agriculture and the restaurant industry, were still in negative territory. "But at least Tuesday's figure adds a positive spin," Schussler said. He said it was unlikely that South Africa would slip into negative growth in the fourth quarter of 2009. "However, I am worried about the second half of 2010 when Eskom increases its tariffs," he said. SAPA |
