#FullView CHART OF THE DAY: SA GDP

#FullView CHART OF THE DAY: SA GDP

Sick and exhausted of living in a recession?

South Africa is likely to emerge from its first recession in nearly a decade as monthly indicators for the third quarter signal a modest rebound.

South Africa's economy expanded 2.2% in the third quarter from the second, snapping out of recession after a revised 0.4% contraction in the previous quarter, data from Statistics South Africa showed.

Lukman Otunuga, an analyst at FXTM foreign exchange, said in a note to investors that the country's exit from recession would boost "confidence over the South African economy and investor appetite towards the rand". "The lift in the third quarter GDP growth momentum is, in the main, expected to have been underpinned by positive growth in the manufacturing and trade sectors", Kaplan said.

Stats SA lumps the following under manufacturing: iron and steel, metal products and machinery, wood, paper and publishing; petroleum, chemical products, rubber and plastic products; and motor vehicles, parts and accessories and other transport equipment.

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The country's economic performance is seen as crucial to bolstering the ruling African National Congress' standing ahead of national polls due in May 2019.

The largest negative contributors to second-quarter GDP growth were the agriculture industry, which plunged 29.2 percent, followed by the transport industry, which declined 4.9 percent and trade which decreased 1.9 percent.

The primary industry sector still lags, the mining industry decreasing by 8.8%, construction by 2.7% and electricity, gas and water by 0.9%.

Last month, the central bank cut its 2018 growth forecast to 0.6%, a touch lower than Treasury's 0.7% forecast in the October budget.

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