South Africa: Economy accelerates in the fourth quarter
February 24, 2015
In the fourth quarter, the economy expanded 4.1% over the previous quarter at a seasonally adjusted annualized rate (SAAR). The reading came in well above the 2.1% expansion observed in the third quarter; and it overshot the 3.8% increase the market had expected. However, in annual terms, GDP expanded 1.3%, which came in below the 1.6% expansion recorded in the third quarter.
Q4’s expansion came on the back of an acceleration in mining and quarrying, which expanded 15.2% (Q3: +3.9% quarter-on-quarter SAAR). In addition, manufacturing rebounded from a 1.0% contraction in the third quarter to a 9.5% expansion in the fourth. The construction sector also improved over the previous quarter as it expanded 3.5% (Q3: +2.2% qoq SAAR).
Author: Dirina Mançellari, Senior Economist