Economists optimistic SA's underlying trends point to economic growth
Growth was 0.3% for 2016, lower than the Treasury’s forecast of 0.5% and the Reserve Bank’s forecast of 0.4%
SA’s economy shrank in the fourth quarter, making 2016 the worst year since the 2009 recession, but economists are optimistic that the worst is behind us.
Economic growth was 0.3% for 2016, lower than the Treasury’s forecast of 0.5% and the South African Reserve Bank’s forecast of 0.4%.
According to Statistics SA, GDP contracted 0.3% quarter on quarter in the fourth quarter of 2016. SA avoided a recession only on technical grounds — there was a fall in output in the first quarter and fourth quarter, but not in any two consecutive quarters.
Capital Economics economist John Ashbourne said: “While today’s figures make for gloomy reading, we believe that the underlying trend supports our view that growth will pick up in 2017.
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