By Ntando Thukwana.
South Africa’s economy expanded at the fastest pace in two years in the second quarter, lifted by a strong rebound in manufacturing and mining.
Gross domestic product grew 0.8% in the three months through June, compared with growth of 0.1% in the prior quarter, Statistics South Africa said in a report released in the capital, Pretoria, on Tuesday. That beat the 0.6% median estimate of 13 economists in a Bloomberg survey.
On the production side of the economy, eight of 10 sectors expanded in the quarter, led by manufacturing, mining and trade.
Mining output grew 3.7%, its the fastest pace since the first quarter of 2021, with platinum group metals, gold and chromium ore the main positive contributors, Statistician-General Risenga Maluleke said.
The trade, catering & accommodation sector increased by 1.7%, its strongest showing since the first quarter of 2022.
The expenditure side of the economy was also positive, lifted mainly by stronger household consumption that increased for a fifth straight quarter, and softer imports. Still, investor sentiment remained week with gross fixed capital formation falling for a third straight quarter.
The growth momentum is expected to face challenges in the coming quarters due to US tariffs.
South African shipments of vehicles, citrus fruit and other products to the US have been hit with 30% levies, the highest rate imposed on goods from any nation in sub-Saharan Africa.
Manufacturing data published last week showed factory sentiment has been dampened by subdued business activity and sluggish demand as the tariffs begin to take a toll on exports.
“US trade has not kicked in yet,” Joe De Beer, deputy director general of economic statistics, told reporters, adding that it would take time to understand the impact of the US tariffs on overall South African exports.