Agriculture rebound benefits SA’s embattled economy
Growth of 2% was higher than most forecasts, driven by a 44% resurgence in the agriculture, forestry and fisheries sector
A recovery in agriculture gave GDP a surprise boost in the third quarter and has led to economists revising upwards their forecasts for the year. Mining and manufacturing also buoyed GDP in the third quarter. The third-quarter positive growth outcome bodes well for SA, which has been placed on watch for a sovereign credit rating downgrade by Moody’s Investors Service. GDP increased more than expected, by 2% quarter on quarter in the third quarter of 2017. For the second successive quarter, growth was supported by a rebound in the primary sector and has re-energised hopes that SA may see stronger growth for the year. In November, SA received a reprieve from Moody’s, which remained the most generous of the big three credit ratings agencies in being the only one to still rate SA’s foreign and local currency government bonds as investment grade. But it flagged low growth as a risk factor. “The decision to place the rating on review for downgrade was prompted by a series of recent develo...
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