JOHANNESBURG (Reuters) -The South African rand weakened on Tuesday after data showed the country’s second-quarter economic growth was slightly weaker than expected.
At 1537 GMT, the rand traded at 17.9725 against the dollar, about 0.9% softer than its previous close.
Gross domestic product expanded 0.4% in quarter-on-quarter seasonally-adjusted terms in April to June, below the 0.5% forecast by economists polled by Reuters, figures released by Statistics South Africa showed.
While growth was supported by higher consumer spending and power availability, there were output declines in agriculture, mining and transport.
“The outcome is reflective of a still subdued economy, constrained by a number of challenges, notably logistical bottlenecks at the ports and railways which continue to hinder activity and export potential,” Investec economist Lara Hodes said in a research note.
On the stock market, the Top-40 index closed 1.6% lower.
South Africa’s benchmark 2030 government bond was up marginally, with the yield down 1 basis point at 9.215%.
(Reporting by Tannur Anders and Bhargav Acharya; Editing by Sharon Singleton and Christina Fincher)
