Mining output figure much higher in May than economists’ predictions
SA’s chances of escaping a third consecutive quarter of declining GDP are heavily dependent on mining and agriculture
The mining sector may help SA navigate out of recession, following possible positive growth in the sector in the second quarter, but the industry remains under increasing pressure. Mining production increased 3.6% year on year in May after rising 1.6% in April, surprising many economists. Old Mutual Investment Group economic strategist Rian le Roux said on Wednesday at a media briefing in Sandton that he expected a stronger second quarter based on the economic data released so far in 2017 with a forecast of 2.5%. SA entered a recession after the first-quarter GDP results indicated that the economy had contracted for two consecutive quarters. The only two sectors to show growth in the first quarter were agriculture and mining. While the sector is seeing growth, it faces headwinds from policy uncertainty. Investec economist Kamilla Kaplan said that the lift in commodity prices in conjunction with increased global growth momentum should continue to support mining production. But she sa...
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