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InstaForex Loprais Team - Official participant of the Dakar rally

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InstaForex Loprais Team - Official participant of the Dakar rally

2021.09.0716:34:00UTC+00South Africa Economy Expands Further In Q2

South Africa's economy expanded for a fourth straight quarter in the three months to June, yet the economic output remained below its pre-pandemic levels, preliminary data from Statistics South Africa showed Tuesday.

Gross domestic product rose a seasonally adjusted 1.2 percent from the first quarter, when it expanded 1.0 percent.

In the June quarter of 2020, GDP had decreased 17.4 percent due to the severe impact of the Covid-19 pandemic and the resultant lockdowns.

The economy is 1.4 percent smaller than what it was before the COVID-19 pandemic, the statistical office said.

The economic impact of the wave of severe economic disruption, protest action and violence in KwaZulu-Natal and Gauteng, which took place in July, will reflect in the third quarter GDP results that are due for release in December, the agency added.

Six industries recorded positive growth in the June quarter and the largest positive contributors were the transport, personal services and trade industries.

Household final consumption expenditure increased 0.5 percent, contributing 0.3 of a percentage point to total growth. Government final consumption expenditure shrunk 0.1 percent.

Gross fixed capital formation grew 0.9 percent, adding 0.1 percentage points to growth. Changes in inventories deducted 0.2 percentage points. Net exports contributed 0.9 percentage points, mainly due to a 4.0% increase in exports of goods and services.

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