Radical Economic Transformation Is 'Killing' SA Economy, Despite GDP Growth

South Africa and Nigeria nearing end of recession?

Statistics South Africa announced on Tuesday that agriculture, fisheries and forestry were a major contributor to lifting of the country's GDP with increased production of 33.6 percent.

It stated that the nation's GDP grew by 0.55 per cent (year-on-year) in real terms in the quarter, indicating the emergence of the economy from recession.

But FNB senior economist Mamello Matikinca said they were hesitant to read too much into the GDP figure and the recovery might be short-lived given the weak consumer confidence and slow growth in after-inflation wages.

According to the report, Oil, gas, Agriculture, Trade drove the 2Q GDP growth.

But in a statement on Wednesday, Dayo Adeyeye, spokesman of the PDP, said the aforementioned growth rate fell short of the 6.54% gross domestic product (GDP) growth in the corresponding quarter of 2014 - a period the Jonathan administration was in power.

The bureau says oil output for March 2017 has been revised and this affected average output for the first quarter 2017 from 1.83mbpd to 1.69mbpd.

"I don't believe that recovery from recession means that prices will come down, why prices are high is because of a fall in the value of naira to the dollar and as long as it persists, prices won't come down".

Wood equaliser earns United States precious Cup point
Costa Rica will continue its effort to clinch a World Cup spot with a match against Honduras at the National Stadium on October 6. Trailing 1-0 late in the match , United States of America were in need of some inspiration to avoid another costly defeat.

Noting that SA's growth for the year as a whole was forecast at just 0.5%, after 0.3% in 2016, Investec economist Kamilla Kaplan said: "SA's performance diverges from the synchronised global economic upswing".

Meanwhile, Africa's second biggest economy, Nigeria, also moved out of recession after its ailing economy expanded 0.55 percent year-on-year in the second quarter of the year.

The growth rate "is way below optimal", and insufficient to create more work for the 14.2% of Nigerians who want to work but can't find jobs, Financial Derivatives Co chief executive officer Bismarck Rewane said by phone from Lagos.

Household consumption bounced back, advancing 4,7% quarter-on-quarter (q/q), the fastest growth since the second quarter of 2012, as consumers spent more on clothing and footwear (26,7% q/q) and on food and alcoholic beverages (10,1% q/q).

The party said this in reaction to the news that Nigeria had exited recession.

Nigeria had been in recession since previous year, with five quarters of negative growth.

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