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Good News: In Just Three Months; South Africa Finally Exits Recession

South Africa, the second greatest economy, has left one of the shortest recessions on the continent, in front of the 2019 race.

In September, it was accounted for that the economy fell into a specialized retreat, in the wake of chronicle two continuous quarters of negative development.

As indicated by the South African office of statistics, the economy developed by 2.2 percent in the second from last quarter of 2018.

This is a lift for President Cyril Ramaphosa, who has been on continuous investment roadshow to shore up the nation’s economy, even as he looks for re-appointment in 2019.

StatsSA had said in September, that the nation’s economy slipped into subsidence dependent on shortcomings recorded in the farming and assembling parts of the nation.

A statement from StatsSA showed that the agriculture expanded by 6.5 percent, after an underwhelming first and second quarter of 2018, which impacted heavily on the overall growth.

In Q3 2018, the mining sector was down 8.8 percent, while the financial and manufacturing sectors were up 2.3 percent and 7.5 percent, respectively.

There was also a jump of 3.2 percent in wholesale and retail trade sales as the nation’s currency appreciated against the US dollars and the British pound, in the period under review.

Nigeria and South Africa, the biggest economies on the continent, have been into recessions that have affected the overall growth of the entire continent.

Nigeria slipped into its worst recession in 29 years in the second quarter of 2016. The country was in the recession for four quarters — 12 months, before recording a growth of 0.6 percent in Q2 2017.

Both countries will be going to the polls in 2019 to elect a president, as Ramaphosa and Nigeria’s Muhammadu Buhari will be standing in for their individual elections.

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