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South Africa Economy Grows 4.1%

South Africa Economy Grows 4.1%South Africa Economy Grows 4.1%

South Africa’s gross domestic product (GDP) increased by 4.1% in the fourth quarter of 2014, Statistics South Africa (Stats SA) announced, AllAfrica reported Wednesday.

“Real gross domestic product at market prices increased by 4.1% quarter-on-quarter, seasonally adjusted and annualised,” Stats SA said. This growth was more than what markets had expected.

“GDP growth accelerated by much more than the markets expected in the final quarter of 2014, growing by a seasonally adjusted and annualized 4.1% quarter-on-quarter, up from 2.1% and 0.5% in the third and second quarters respectively and better than the consensus market forecast of 3.7%,” said Nedbank economists.

The largest contribution to the quarter-on-quarter growth of 4.1% was manufacturing that contributed 1.2% based on growth of 9.5%. The mining and quarrying industry contributed 1.1% based on growth of 15.2%. The finance, real estate and business services contributed 0.7% based on growth of 3.5%.

Economic activity in the manufacturing industry reflected positive growth of 9.5% due to higher production in petroleum, chemical products, rubber and plastic products division, among others.

  Mining and Quarrying

Economic activity in mining and quarrying reflected positive growth of 15.2% due to higher production in the mining of “other” metal ores, including platinum; and “other” mining and quarrying, including diamonds.

The growth in finance, real estate and business services was due to increases in activities in the financial markets and banking.

Over 2014 as a whole, real GDP grew by only 1.5%, down from an already tame 2.2% in 2013.

  Market Prices

According to Stats SA, the nominal GDP at market prices during the fourth quarter of 2014 was R979-billion (approximately $85 billion), which is R16-billion more than in the third quarter of 2014.

Real GDP at market prices increased by 1.5% in 2014 following an increase of 2.2% in 2013, with the largest contribution to the increase in 2014 being general government services, which contributed 0.5% based on growth of 3%. Finance, real estate and business services contributed 0.4% based on growth of 2.2%.

Nominal GDP was estimated at R3.8-trillion for the year of 2014.

 

Financialtribune.com