AGRICULTURAL GROWTH
SA clambers out of recession, with big GDP boost from farming sector
Growth in the drought-ravaged agricultural sector surged to 33.6%, making it the biggest contributor to slightly better than expected growth in the second quarter
SA has climbed out of recession bolstered by a strong performance in the agricultural sector and the recovery is expected to continue at a modest pace in the second half of the year. While second-quarter GDP figures are expected to be the highest this year, it spells a turn for the agricultural sector which has been under pressure. The boost came from the agriculture, forestry and fishing industry which grew by 33.6% and contributed 0.7 of a percentage point to GDP growth. The sector rebounded in the first quarter of 2017 with an increase of 22.2% after eight consecutive quarters of contraction. The growth came on greater production of field crops and horticultural products. On the production side, agriculture and mining will remain the main drivers, but gradual recoveries are also expected from the services and manufacturing sectors as local financial conditions improve and global commodity prices drift higher. Agbiz head of research Wandile Sihlobo said: “These results mirror the ...
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