South Africa’s GDP rose 4.6% quarter-on-quarter in the first three months of 2021, better than the expected 3.2%.
Statistics SA reported on Tuesday the economy grew by 1.1% in the first quarter of 2021 (January–March), translating into an annualised growth rate of 4.6%.
The finance, mining and trade industries were the main drivers of output on the production (supply) side of the economy, while household spending and changes in inventories helped spur growth on the expenditure (demand) side.
Despite it being the third consecutive quarter of positive growth, the South African economy is 2.7% smaller than it was in the first quarter of 2020.
TreasuryONE reports the year-on-year on the figure is -3.2%, which is in line with expectations.
The news didn’t move the needle on the rand exchange rate against the dollar, with the currency trading at R13.55/$.