Economy

Business confidence falls to 20-year low

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

PPS Investment Comment: SA GDP (Q2 2019)

Second quarter economic growth surprised on the upside according to the latest GDP statistics released today, with a slight positive revision to the first quarter reading as well. In the second quarter, the economy grew 3.1% quarter-on-quarter, exceeding analyst expectations of around 2.5%. This is a strong outcome on the face of it, but viewed in the context of the prior quarters’ significant contraction, the rebound from a depressed base is less spectacular. Encouragingly, this positive reading means that a recession has been averted for now, though it doesn’t escape the fact that underlying growth remains weak.

Stop the blame game – business and government must find common ground to save SA

Instead of pointing fingers and focussing on narrow self-interests, government, business and society needs to draw a line in the sand and work together to save the South African economy. This was the resounding message that emerged at a panel discussion between industry heavyweights at the Nedgroup Investments Engage event held in partnership with Business Day in Johannesburg last week.