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Economic Growth Slows to 2,7%| News by Staff Reporter
According to data released on Tuesday 29 May
Economic growth in South Africa slowed during the first quarter of 2012 to 2,7% on a seasonally adjusted an annualised basis, according to data released on Tuesday.
The decrease in the annual economic growth rate follows a 3,2% rise in the fourth quarter of 2011, according to the data.
Economists polled last week forecast an increase in quarter-on-quarter growth of 2,4% in the first quarter of 2012, while year-on-year growth was seen at 2,2%.
According to Kevin Lings of Stanlib the figures were “Better than what most people were looking for.”
He said the surprise would be manufacturing being as strong as it was “simply because we saw quite a shock number for the March number so clearly it wasn’t quite as badly as impacted.
“We know mining was weak because of all the closures and strike activity, especially around platinum. The other sectors held up reasonably well especially manufacturing.”
He added that it wasn’t a bad reading overall.
“A nice pickup in construction, that will also stand out as an encouraging positive because construction has gone through quite a difficult phase over the last two years,” said Lings.
The rand was seen to weaken to R8.3540 after the data was released from R8.3470 at 09:30 GMT.