HSBC: South Africa’s economy 'stalled' in Q3, not contracting
HSBC Securities on Thursday revised its growth forecast to reflect a “stalled” South African economy during the third quarter of the year, as opposed to its initial “falling” outlook, mostly as a result of more robust mining output during the period.
The firm on Thursday said it expected the economy to grow by 0% in the third quarter, revised upwards from an annualised 0.7% contraction, with subdued growth expected in the final quarter of the year.
It also estimated a full-year uptick of 0.3%, revised from 0.2% previously.
“After rebounding in the second quarter of 2016, we expect South Africa’s economy to have stalled during the third quarter, as manufacturing production contracted and consumer spending showed signs of slowdown,” said HSBC Securities economist David Faulkner.
While mining continued to expand during the third quarter, supported by a 20% rise in iron-ore output, output in the manufacturing sector, which accounts for about 12.5% of real gross domestic product (GDP), fell at an annualised pace of 5% during the third quarter, and both passenger vehicle sales and retail spending dropped.
“This would be consistent with recent data that show persistently weak confidence levels and subdued purchasing managers index readings,” he said.
HSBC continued to forecast a modest acceleration in growth to 0.6% in 2017 and 1% in 2018.
GDP data is expected to be released on December 6.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Stewarts & Lloyds is a leading steel, tube, and engineering product supplier in South Africa.
VISIT SHOWROOM
ATI systems comprises five divisions: electrical assemblies, drives and controls, feedback sensors, enclosures, and strip guiding.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
