Economic growth recovers in 2019Q2, recession avoided as mining sector bounces back

Statistics South Africa (StatsSA) reported that the South African economy expanded by 3.1% quarter-on-quarter (q-o-q) during 2019Q2. This was a much stronger outcome than expected and allowed South Africa to ward off a dreaded recession. The largest contributor to the q-o-q recovery in GDP was a 14.4% q-o-q rebound in mining activity – the first positive q-o-q reading in a year. Based in the q-o-q changes in real GDP, the South African economy was 0.9% y-o-y larger during the second quarter. This was a notable recovery from the 0.0% y-o-y number recorded in 2019Q1. Nonetheless, four sectors - agriculture, forestry and fishing; mining; utilities; and construction – were smaller in 2019Q2 compared to a year earlier.

This is an excerpt from an economic commentary piece issued by PwC’s Strategy&. The full article can be viewed here.