SA Sees Slight Economic Growth

By: Staff Writer

Statistics South Africa has announced that the South African economy grew by 1.1% in the first quarter of this year.

The finance, mining and trade industries are said to have largely contributed to the growth.

“Economic activity in the finance, real estate & business services industry increased at an annualised rate of 7,4%. This was mostly driven by property services (recording a rise in mortgage advances and bond registrations) and the banking sector (registering a rise in the number of credit extensions),” the report revealed.

The mining industry had a positive quarter too with annualised growth of 18,1%, boosted by the production of platinum group metals, iron ore, gold and chromium.

On the growth in the trade industry, the report says wholesalers recorded increases in sales of petroleum, as well as in consumer electronics (most notably digital appliances and high-end TVs). Retailers enjoyed a positive quarter, led by increases in sales of grocery products, healthcare services, vitamins and drugs.

Stats SA confirmed that economic activity in the country increased as a result of eased lockdown restrictions.

However, despite the positive growth for a third consecutive quarter, the South African economy is still 2.7% smaller than it was before the COVID-19 pandemic.