JOHANNESBURG (Reuters) – The South African rand was little changed on Tuesday even after the statistics agency reported better-than-expected second-quarter gross domestic product numbers.
At 1338 GMT, the rand traded at 17.4875 against the dollar, a whisker away from Monday’s closing level.
Statistics South Africa data earlier showed that the country’s economy grew 0.8% in quarter-on-quarter terms, slightly better than economists’ predictions for an expansion of 0.5% and the 0.1% reported in the first quarter.
Economic growth in Africa’s most industrialised economy quickened to its fastest rate in two years, though it remains well below the level needed to meaningfully reduce high levels of poverty and inequality.
“The outcome is below 1.0% and as such, is reflective of a subdued domestic economy which continues to face a myriad of structural challenges, notably on the logistics front, impeding optimal economic activity and export potential,” Investec economist Lara Hodes said in a note.
The coalition government formed last year has been trying to boost growth through reforms, though its efforts are yet to bear fruit.
Investor focus will shift to mining, manufacturing and current account data due on Thursday.
On the Johannesburg Stock Exchange, the Top-40 index last traded up 0.7%.
South Africa’s benchmark 2035 government bond was slightly stronger, as the yield fell 4 basis points to 9.495%.
(Reporting by Sfundo Parakozov and Anathi Madubela; Editing by Kirsten Donovan and Bernadette Baum)
