Mining may help stem SA’s slide into recession
Production increased dramatically in March but manufacturing may offset some of the gains
SA could be well on its way to avoiding a recession, courtesy of a resurgent mining sector. The sector was set to make a positive contribution to the first quarter GDP and may just help the country stem its slide into a recession. Mining production increased drastically, 15.5% year on year in March and 3.5% in the first quarter on the back of an improvement in commodity prices and an uptick in demand. It is the highest quarterly growth performance for the sector since the second quarter of 2016. Mining contributes just more than 7% to the GDP. After being one of the largest negative contributors to the 2016 fourth-quarter GDP growth, the mining sector is set to be one of the largest positive contributors. While the mining production data came out better than expected, the manufacturing sector may offset some of the gains, putting GDP under 1%. "This was a surprise," Chamber of Mines chief economist Henk Langenhoven said. "It’s significantly better and any improvement is good."The st...
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