South Africa’s economy grew by 0.7 percent in the third quarter of 2015, narrowly avoiding a recession, Statistics South Africa (Stats SA) said on Wednesday.
The agency, though, said some of the country’s key industries are in recession.
The increase in overall economic activity in the third quarter was characterised by three of the ten main industry groups shrinking in size, while the other seven experienced some growth1.
“If it was not for the much lower oil price, we would have been in a recession already”, he said, adding that some food prices that are lower internationally have kept the consumer “alive”.
The various segments showed mix results with the primary sectors dropping 10.4% due to a decrease in agriculture (-12.6%), mining (-9.8%) and electricity (-8.0%). In announcing the decision, Reserve Bank Governor Letsetja Kganyago also made clear it was not anticipated that the economy would register negative growth in the third quarter of the year. Agriculture which has been affected by a severe drought shrank by 12.6 percent.
South Africa over the years has become one of the most sought after emerging market destination for investors.