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GDP slows on manufacturing
Michael Appel
Posted Wed, 29 Aug 2007
South Africa's gross domestic product (GDP) growth slowed to 4.5% in the second quarter from 4.7% in the first, Statistics South Africa (Stats SA) reports, with the slowdown most likely linked to the country's manufacturing sector.
"[Data indicates that the manufacturing sector] slowed down a lot in the second quarter, only posting growth of half a percent - and it carries the weight of about a sixth of the economy," Stats SA's executive manager for national accounts, Joe de Beer, told BuaNews on Tuesday.
De Beer said the main driver in the second quarter was the finance and business sector, which contributed 1.5% of the 4.5% growth in the economy. There was also strong growth in the transport and communication and construction sectors.
De Beer cautioned however, that the trade sector was showing signs of slowing down.
"If you compare it to previous quarters, we have had the lowest growth in trade, quarter-on-quarter, since the second quarter of 2004, a clear
sign that the trade sector is beginning to slow down."
De Beer said preliminary indicators showed that the economy was still growing fairly strongly, with growth for the first half of the year at 5.2% compared to the same period in 2006.
"Whether this will materialise into the 5% growth for the year or higher is too early to tell from our side," he added.
Despite the slowdown, it was South Africa's 35th consecutive quarter of economic growth since 1998 - the longest recorded upswing in the country's history.
Source: BuaNews
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