Economy dodges recession as GDP climbs 3,1%
After shrinking sharply in the first quarter of 2019, the economy rebounded from a low base to record positive growth of 3,1%1 in the second quarter (April−June). Mining, finance, trade and government services were the main drivers of growth. Three industries (construction, agriculture and transport) registered a slump in production.
Mining was the strongest performer in the second quarter, expanding by 14,4%. This was the industry’s strongest showing in three years since the second quarter of 2016 when production jumped by 16,3%.
Iron ore, manganese and coal were the main contributors to mining growth. Iron ore production climbed by 11,8% (not annualised) in the second quarter of 2019. Manganese was up by 21,2% (not annualised) and coal by 3,6% (not annualised), according to the Mining: Production and sales release. Gold failed to impress, however, shrinking by 4,1% (not annualised).2
Finance, real estate and business services – the largest industry in the South African economy – grew by 4,1%. This was on the back of stronger performances by the banking and insurance sectors.
Buoyant wholesale, retail and motor trade sales in the South African economy lifted the trade industry by 3,9%.