ECONOMIC WEEK AHEAD: Economists expect rebound in growth to be short lived
GDP is likely to be the main economic data this week, writes Asha Speckman
Improvement in the trade and industrial sectors is likely to have lifted the economy out of a recession in the second quarter of 2017, figures from Statistics SA are expected to show this week. But economists expect weak consumer confidence and real wage growth will make this a short-lived recovery. After entering a technical recession — two consecutive quarters of negative economic growth – in the first three months of 2017 economists expect GDP to rebound by 2%. FNB has forecast 2.1% growth in the second quarter compared with a 0.7% contraction at the start of 2017. GDP is likely to be the main economic data this week. Statistics SA will publish GDP figures on Tuesday. FNB senior economist Mamello Matikinca said there was a strong rebound in retail sales in the second quarter. "We anticipate the sector to be the main contributor towards GDP growth." In comparison, Investec also expected a 2.1% quarter-on-quarter improvement. But NKC African Economics predicted a 2.9% recovery in t...
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