GDP grows marginally by 0.7% in third quarter

Cape Town – South Africa’s economy grew marginally by 0.7% in the third quarter of 2015, Statistics SA announced on Tuesday.

The gross domestic product (GDP) announcement comes after a second-quarter contraction of 1.3%.

The mining (-9.8), electricity (-8%) and agriculture (-12.6%) sectors contracted in the third quarter, which has been expected due to lower commodity demand (mining and electricity) and the drought that has affected the country (agriculture).

The manufacturing (6.2%), finance (2.8%) and trade (2.5%) sectors grew in the third quarter.

GDP growth year-on-year was at 1% and 1.5% for the first nine months.

Finance Minister Nhlanhla Nene revised South Africa's expected economic growth rate for this year downward to 1.5% from the 2.0% mentioned in the main budget in February when he presented his mini budget to parliament in October.

In the third quarter, the primary sector (agriculture and mining) pulled down growth forecasts with a 10.4% contraction, while the secondary sector (electricity and construction) grew by 6.2% and the tertiary sector (transport, finance and trade) grew by 1.9%.

Stats SA said higher production in petroleum, chemical products, rubber and plastic products; wood and wood products, paper, publishing and printing; and food and beverages boosted growth in the manufacturing industry. Lower production in the mining of coal, platinum and quarrying of diamonds affected the mining sector, it said.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
16.59
+0.2%
Rand - Pound
20.03
+0.2%
Rand - Euro
16.95
-0.0%
Rand - Aus dollar
11.55
+0.4%
Rand - Yen
0.12
+0.2%
Gold
1,794.65
+0.3%
Silver
20.54
-0.7%
Palladium
2,228.01
-0.7%
Platinum
937.61
-0.8%
Brent Crude
96.65
+1.8%
Top 40
63,771
0.0%
All Share
70,266
0.0%
Resource 10
65,045
0.0%
Industrial 25
85,829
0.0%
Financial 15
15,741
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders