https://www.engineeringnews.co.za
Africa|Manufacturing|Mining|Contracting|Manufacturing
Africa|Manufacturing|Mining|Contracting|Manufacturing
africa|manufacturing|mining|contracting|manufacturing-industry-term

South Africa's economy will expand 3.9% next year - poll

17th December 2020

By: Reuters

  

Font size: - +

The South African economy will expand 3.9% next year after contracting nearly twice that rate in 2020, a Reuters poll found on Thursday, after a strong third quarter performance likely ease this year's estimates.

The country's performance rebounded strongly last quarter as coronavirus restrictions were relaxed, with mining and manufacturing leading an expansion across all sectors.

This quarter's seasonally adjusted, annualised growth is expected to be 4.4% after the economy expanded 66.1% in July-September. It shrank 51.7% in the second quarter as coronavirus lockdowns stalled activity, official data showed.

Growth is likely to be around 2.0% early next year, the poll showed.

Having slumped due to government Covid-19 related restrictions imposed since March, the poll conducted in the past week suggested the economy would contract 7.4% this year and take some time to fully recover, growing 3.9% next year.

However, that was better than medians in last month's poll which showed the economy would contract 8.2% in 2020 and expand 3.0% next year.

"The (Q3) upside surprise also technically lifts 2021 year-on-year growth by almost as much, yet the impact on the 2021 forecast will be pared down by a likely softer first quarter," said economists at JPMorgan.

The South African Reserve Bank was expected to keep interest rates steady at 3.5% next year, but raise interest rates 50 basis points to 4.0% in 2022. Inflation was expected to quicken next year to 3.9% from 3.3% this year.

Edited by Reuters

Comments

Showroom

Multotec
Multotec

Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...

VISIT SHOWROOM 
Alco-Safe
Alco-Safe

An unmanned breathalyser that is made to be tough and simple to use. Can be used in any environment for operator-free breathalyser testing.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.08 0.138s - 161pq - 2rq
Subscribe Now