Aug 28, 2012
SA quarterly economic growth of 3.2% buoyed by miningBack
Gas|Lonmin|Nedbank|Stats SA|Marikana Mine|Electricity|Finance|Manufacturing Industry|Mining|Month Platinum Producer|Real Estate|Real Gross Domestic Product|Retail|South Africa
© Reuse this
In its quarterly GDP report, Stats SA stated that the mining and quarrying sector, which grew by 31.2%, contributed 1.5 percentage points to the second-quarter GDP increase.
Stanlib economist Kevin Lings stated that, had the mining sector not rebounded during the second quarter, the growth rate would have reached a more modest 1.7% annualised quarter-on-quarter growth.
Banking group Nedbank warned the mining sector was expected to come under renewed pressure, given the weak global economic growth and the disruptions earlier this month at platinum producer Lonmin’s Marikana mine.
The sector, with its current illegal strike action in platinum, would be an ongoing contributor of volatility and offset third-quarter GDP growth, agreed Nomura International economist Peter Attard-Montalto.
The finance, real estate and business services sector added 0.5 percentage points and the wholesale, retail and motor trade, catering and accommodation sectors added 0.4 percentage points.
The manufacturing industry impacted GDP negatively with -0.2 percentage points after a 1% decline in growth, while -0.1 percentage points emerged from the electricity, gas and water industry following 4.2% lower growth.
Manufacturing would continue to be impacted by weak external demand, while agriculture, which experienced a 5.8% growth during the period, would continue to improve.
“We still expect growth to slow through the second half as contagion from the external sector spreads, but the economy is clearly leaving the first half at a much higher base than we thought even excluding mining,” commented Attard-Montalto.
Lings said that South Africa’s GDP growth was forecast to grow by 2.6% in 2012, rising to just over 3% in 2013, “assuming no further significant weakening in the global economy”.
Overall, he added, South Africa had now experienced 12 consecutive quarters of fairly reasonable, positive growth.
Edited by: Mariaan Webb© Reuse this Comment Guidelines
Other Economy News
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...