Latest figures from Stats SA show that the country’s economy grew by a higher rate than was expected in the third quarter.
This also means that the economy is now bigger than it was before the start of the Covid-19 pandemic. According to Stats SA the country’s GDP is now R1 161 billion in 2015 rands. It was R1 148 billion in the first quarter of 2020.
In the third quarter the economy expanded by 1.6%, compared to the previous quarter. This was a significant improvement on the second quarter when the economy had shrunk by 0.7%.
In year-on-year terms GDP grew by 4.3%, although this was not seasonally adjusted.
According to Stats SA eight of ten sectors saw an increase in economic activity in the third quarter with agriculture, forestry, and fishing being the primary contributor, growing by a whopping 19.2%, compared to the second quarter.
The figures were a surprise for most economy watchers who expected GDP growth to be lower. It remains to be seen whether this growth will be sustainable, given the continuing power crisis and factional party battles in the ANC causing political uncertainty. At the same time, the global economy is likely to go into recession as demand from China continues to crater, which will have implications for South Africa.