South Africa's economy rolls on
28 February 2007
South Africa's economy continues to expand, with the latest gross domestic product (GDP) figures showing an increase for the 33rd consecutive quarter since 1998, the longest economic upswing in the country’s history.
Figures released by Statistics South Africa (Stats SA) on Tuesday showed that real GDP rose by an annualised 5.6% in the fourth quarter of 2006, far exceeding market expectations.
The annualised economic growth rates for the first three quarters of 2006 were 5%, 5.5% and 4.7%. Economists had predicted fourth quarter growth to be around 4.8%.
According to Stats SA, the main contributors to the increase in economic activity in the fourth quarter were manufacturing (1.4%), finance, real estate and business services (1%), wholesale and retail trade, hotels and restaurants (0.8%) and transport, storage and communication (0.5%).
The seasonally adjusted real value added by non-agricultural industries increased by 5.8%, 6.3%, 4.7% (revised from an increase of 5%) and 6% respectively during the first, second, third and fourth quarters of 2006 compared with each previous quarter.
5% growth in 2006
"These estimates indicate that the real annual GDP at market prices for 2006 increased by 5% compared with 2005 when the real annual economic growth rate was 5.1%," said Joe de Beer, executive manager for national accounts at Stats SA.
De Beer added that the main contributors to economic growth in 2006 were finance, real estate and business services (1.6%), wholesale trade, retail trade, hotels and restaurants (0.9%), manufacturing (0.8%) and transport, storage and communication (0.5%).
The real value added by the non-agricultural industries increased by 5.4% in 2006, following an increase of 4.9% and 5.2% in 2004 and 2005 respectively. This is the highest increase since 1980, when a figure of 6% was recorded.
Absa economist Chris Hart told BuaNews the real GDP figure had come in higher than expected.
"We had expected a 4.8% increase, but this rise is good for growth going forward," Hart said. "It reflects that the manufacturing sector responds well to the supply needs of the economy."
SouthAfrica.info reporter and BuaNews
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