The seasonally adjusted real GDP at market prices for the third quarter of 2014 increased by an annualised rate of 1.4% compared with an increase of 0.5% (revised from 0.6%) during the second quarter of 2014.

According to Stats SA, the main contributors to the quarterly growth of 1.4% was the finance, real estate and business services and the wholesale, retail and motor trade; catering and accommodation industry (each contributing 0.5%), general government services (0.3%) and the agriculture, forestry and fishing industry.

The growth in the agriculture, forestry and fishing industry was due to high production in field crops and animal products while the growth in the wholesale, retail and motor trade, catering and accommodation industry was due to increases in turnover in most trade divisions.

Meanwhile, economic activity in the manufacturing industry reflected negative growth of 3.4% due to lower production in several divisions including basis iron and steel.

According to analysts at Nedbank, the outcome is better than its growth forecast of 1.1% quarter-on-quarter, but slightly lower than the average market forecast of 1.5% quarter-on-quarter.

Adding that, “Provided there are no further lengthy strikes or major disruptions to power supply, the recovery is expected to gain moderate momentum in the final quarter of this year. Overall, real GDP is still forecast to grow by around 1.5% in 2014 as a whole.

“The outlook for 2015 is rosier, with the economy forecast to expand at a moderate pace of around 2.6% as production in mining and manufacturing returns to normal and consumer confidence gradually improves off a low base.”

Source – SAnews.gov.za