South Africa’s gross domestic product (GDP) increased by 0.7% in third quarter of this year, narrowly escaping its second recession in six years, according to data released this week by Statistics South Africa (StatsSA).
A rebound of output in the manufacturing sector prevented further deterioration in the economy, which was hit by a slump in commodity prices (including platinum and copper) and regular power shortages, but the outlook remains sombre.
“Things look very bleak going forward,” KADD Capital economist Elize Kruger was quoted by Bloomberg news as saying. “We have just missed a technical recession and have nothing to be excited about today. It’s quite a bad outcome for the economy.”
