Data likely to show SA and Nigeria have exited a second-quarter slump
Abuja — The worst may be over for Africa’s two largest economies as it is likely that they emerged from a slump in the second quarter. Official data on Tuesday will probably show that SA’s economy expanded in the three months to the end of June, ending its second recession in less than a decade. Nigeria’s GDP probably grew from a year earlier, and came out of its worst slump in a quarter of a century. SA and Nigeria together account for almost half of sub-Saharan Africa’s GDP and their recoveries may boost trade and production across the region. The reasons differ: while Nigeria, the continent’s biggest oil producer, is benefiting from a rebound in crude output, stronger retail sales may help drive growth in SA. "In both cases a lot of the ‘recovery’ is due to things bouncing back from very poor performances in the reference quarter," John Ashbourne, an economist at Capital Economics, said in an e-mailed response to questions. "But that’s not all. In both cases, there is some real g...
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