COMMENTARY
SA economy signals stronger
post-COVID bounce than estimated The South African economy rebounded further in the final quarter of last year, with Gross Domestic Product (GDP) expanding 6.3% quarter-on-quarter (seasonally adjusted annualised). Third quarter growth was also revised higher, from 66.1% to 67.3% quarter-on-quarter (seasonally adjusted annualised), signalling a stronger post-COVID bounce than initially estimated. By Reza Hendrickse, Portfolio Manager at PPS Investments For the full year, the SA economy contracted 7.0%, severely impacted by the pandemic lockdowns, during which economic activity ground to a halt. Although last year was the worst in decades, growth has in fact surprised positively, with initial forecasts having predicted an even deeper recession. Of the three main economic sectors, the secondary and tertiary sectors (which relate to manufacturing and the services industries) showed the strongest growth. Drilling down deeper, eight out of the ten industries measured delivered positive growth, with manufacturing and trade together contributing around half of this quarter’s growth in economic output. Manufacturing was driven largely by
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