Economist says contraction in GDP ‘no surprise’
An economist says while the latest GDP contraction of 0.2% is disappointing it didn't come as a surprise.
Stats SA on Tuesday noted that economic growth was pulled down by the agriculture, manufacturing, and construction sectors between July and September.
The bird flu outbreak was also a contributor.
"I think it was unbalanced, slightly than economists had forecast. The contraction came in at 0.2%, and I think the consensus was 0.3%, so it was expected by the inverted commas professional, but it’s still disappointing considering the potential it has in this economy,” said economist Graeme Korner.
He said manufacturing saw the biggest decline of 1.3%.
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"Mining is also down by 1.1%. I think it’s pretty broad-based across the sectors. Between the incredible challenges that Transnet, for example, and Eskom has thrown at the economy actually took a limp away with a fairly modest 0.2% GDP decline in the quarter, consider this a testament to the resiliency of South African economy."
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