The South African economy grew by 0.6% in the second quarter of 2023, according to Statistics South Africa (Stats SA).

The median GDP growth forecast among economists who were surveyed by Reuters was just 0.1%, according to Fin24.

Eyewitness News reports that manufacturing and finance were among the six sectors that showed substantial growth between April and June.

A drop in productivity in the transport and communication sectors was the biggest drag on the economy.

Fin24 reports that while the second quarter began with intensive power cuts, June saw the lowest monthly load-shedding since August 2022, which helped to boost the manufacturing industry. The sector grew by 2.2%, with nine of the ten manufacturing divisions expanding in the second quarter. 

The mining industry expanded by 1.3%, with the strongest growth coming from platinum group metals, gold and coal.

According to Fin24, agriculture made a strong comeback, growing by 4.2% after having shrunk by more than 12% in the first quarter.

The improved second-quarter performance is attributed to favourable weather conditions, increased cultivation, and a rise in export demand.

The finance, real estate and business services industry grew by 0.7%. But after growing for nine months, the construction industry shrank in the second quarter.

[Image: WikiImages from Pixabay]


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