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South Africa's economy out of recession

The South African economy is out of recession as it expanded 2.5% in the second quarter after contracting by a revised 0.6% in the first quarter, Statistics South Africa said on Tuesday.

Africa’s most industrialised economy entered recession in March after two consecutive quarters of contraction, but growth in agriculture in the three-months to end June supported a recovery.

This is an improvement from the contraction reported for two consecutive quarters. Gross Domestic Product (GDP) declined 0.3% in the fourth quarter of 2016 and 0.6% in the first quarter of 2017.

Second-quarter data shows year-on-year GDP growth was 1.1%, and for the six months growth has been 1.1%. The nominal GDP is estimated at R1.145bn.

The biggest boost came in part from the agriculture, forestry and fishing sector — which increased by 33.6% and contributed 0.7 percentage points to GDP growth.

SA’s agriculture sector is recovering from the effects of a long and severe drought, which has abated in most parts of the country — but continues to ravage the Cape.

Statistician general Pali Lehohla explained that the primary industry contributed “significantly” to the growth numbers, with growth of 10.3%.

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