- Economists had predicted 3.1% growth
- Finance industry was the biggest contributor
Harare – South Africa has recorded an above target economic growth of 4.6 in the first quarter of 2021 compared to the last quarter of 2020 significant of the beginning of recovery from the COVID-19 crisis.
This is according to the latest data published by the country’s official statistics agency, Statistics South Africa.
Economists had been more conservative in their projections, expecting quarter-on-quarter annualised growth to come in at 3.1%.
In year-on-year terms however, the country’s economy shrunk by 3.2 percent.
The statistics agency says finance, mining, and trade industries were the main drivers of output on the production side of the economy, while household spending and changes in inventories helped spur growth on the demand side.
The finance sector after growing by 7.4 percent in the quarter contributed 20 percent to the overall growth realized.
On a similar upwards trajectory was the trade sector which contributed 15 percent to the total quarterly GDP after posting an independent improvement of 6.2 percent.
Meanwhile the mining and transport and communication sector both contributed nine percent to the overall rise after the industries themselves grew by 18.1 percent and 4.8 percent respectively.
Other significant contributors included government, manufacturing, personal services, electricity, gas and water and construction.
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