South Africa economy avoids recession

South Africa has avoided being tipped into recession after second-quarter GDP figures showed the economy grew by 0.6% during the April-to-June period.

The economy had contracted by 0.6% in the first quarter. A platinum strike in the country was blamed for the poor performance in the first three months.

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South Africa was last in recession in 2008 amid the global financial crisis.

By 2011 it had made a substantial recovery, but there have been worries recently that it would slip back.

Africa’s most advanced economy, and the continent’s second largest, grew by 1% on an unadjusted year-on-year basis in the quarter, against growth of 1.6% in the previous quarter.

South Africa’s agriculture and financial sectors grew 4.9% and 1.5% respectively in the second quarter.

Meanwhile, the under-pressure mining sector contracted 9.4% quarter-on-quarter in the second three months of the year, and manufacturing contracted by 2.1%.

The wholesale and retail trade sales shrank by 0.2%, while construction expanded by 5%.

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Digestible Politics

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