South Africa’s economy grew at its quickest rate in 14 years in 2021, reversing a coronavirus-induced decline the previous year. This is the highest rise since 2007.
According to a report this week by Statistics South Africa, the country’s gross domestic product (GDP) rose by 1.2 percent quarter on quarter in the fourth quarter last year, bringing the economic growth rate for the year to 4.9 percent.
Mining, agriculture, and manufacturing grew at the fastest rates: 11.8 percent, 8.3 percent, and 6.6 percent respectively. Higher economic activity in banking, personal services, and manufacturing (contributing 0.9 percentage points, 0.8 percentage points, and 0.8 percentage points, respectively, to the annual increase) were the main drivers of the increase.
Despite the expansion, Statistician-General Risenga Maluleke cautioned that the economy was still at a level comparable to the third quarter of 2017.
He was quoted by EWN as saying: ‘At the beginning of the year of 2020, we were sitting at R1.147 trillion in terms of real GDP. We are now sitting at R1.126 trillion. So, we haven’t reached where we were pre-COVID.
In 2020, the country’s GDP contracted by 6.4%.
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