Aug 28, 2012
SA quarterly economic growth of 3.2% buoyed by miningBack
Agriculture|Africa|Lonmin|Mining|Nedbank|Platinum|Stats SA|Water|Africa|Marikana Mine|Electricity|Finance|Manufacturing|Manufacturing Industry|Month Platinum Producer|Real Estate|Real Gross Domestic Product|Retail|Services|Water|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 (150 word limit)
Creamer Media Senior Researcher and Deputy Editor Online
Other Trade News
Updated 3 hours ago South Africa slipped one position, from 52 to 53, in the latest world competitiveness ranking, which highlighted power and infrastructure shortfalls, high youth unemployment, as well as inadequate education and technical skills availability as key challenges to the...
Updated 6 hours ago JSE-listed Dipula Income Fund reported that its distributable earnings grew 33.2% in the six months ended February 28, translating into a combined growth of 6.8% in distributions for both A- and B-linked units. The distribution attributable to the A-linked units was...
Updated 6 hours ago JSE-listed Growthpoint Properties’ Kirstenhof Office Park, in Johannesburg, has become the hundredth building in South Africa to achieve a Green Star SA certification from the Green Building Council of South Africa (GBCSA), securing a 5-Star Green Star: Existing...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in 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...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...