South Africa still “weak” but signs point to an economy out of recession

South Africa is still “weak and confidence, what little remained, is evaporating fast.” On the political front, the cabinet’s reshuffling has brought about instability, analysts write.

Major storms have also hit Johannesburg, and Durban, being so badly affected that the port closed for a few days. News reports say three ships ran aground, equipment was lost and some piers are still closed.

Yet, the Rand has been reasonably steady against major currencies. GDP is expected to grow in the second quarter of this year, which analysts say would mean the economy is out of recession.

Growth was driven by higher output from the agriculture sector. While the overall economy showed signs of growth, capital investments have fallen. Most indicators have been driven down by the decline in residential construction.

 

Source: ITTO