JOHANNESBURG – A government data agency says South Africa narrowly avoided recession after the economy grew by less than 1 per cent.
On Tuesday, Statistics South Africa released a statement saying South Africa’s economy grew by 0.7 per cent, improving from a 1.3 per cent contraction in the previous quarter. The government agency said South Africa would have been in recession had the economy shrunk for a second consecutive quarter.
Statistics South Africa attributed the recovery to growth in seven out of ten of South Africa’s main industries, such as manufacturing and the financial sector.
The agency, though, said some of the country’s key industries are in recession. Agriculture, affected by drought, shrank by 12.6 per cent. Mining activity fell by 9.8 per cent while the electricity, gas and water supply sector decreased by 8 per cent.