SA’s economy may be looking up due to boost from mining sector
Helped by platinum groups metals and iron ore
In spite of a contraction in manufacturing and retail sales, things are looking up for the economy with a boost from the mining sector. On Thursday, Statistics SA said that mining production saw an increase of 4.6% year on year in February 2017. The mining sector only accounts for about 8% of SA’s GDP, but its recovery may help lift other sectors, especially manufacturing. The two main positive contributors were platinum group metals, which were up 47.2% and contributed 6.1 percentage points; and iron ore, which was up 20.9% and contributed 3.3 percentage points. Seasonally adjusted mining production increased by 2.9% in February 2017 compared with January 2017, while it decreased by 1.6% in the three months ended February 2017 compared with the previous three months. Diamonds, which contributed one percentage point had, the biggest drag. Seasonally adjusted mineral sales at current prices decreased by 3.2% in January 2017 to R33bn compared with R41.7bn in December 2016.
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