Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Koos Bekker sells R2.5-billion in Naspers and Prosus shares

      Koos Bekker sells R2.5-billion in Naspers and Prosus shares

      23 December 2025
      Tribunal clears Vumatel's takeover of Herotel - with conditions

      Tribunal clears Vumatel’s takeover of Herotel – with conditions

      23 December 2025
      Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

      Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

      23 December 2025
      Netflix launches Afcon football show, hinting at bigger sports ambitions

      Netflix launches Afcon football show, hinting at bigger sports ambitions

      23 December 2025
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
    • World
      Trump space order puts the moon back at centre of US, China rivalry - US President Donald Trump

      Trump space order puts the moon back at centre of US, China rivalry

      19 December 2025
      Warner Bros slams the door on Paramount

      Warner Bros slams the door on Paramount

      17 December 2025
      X moves to block bid to revive Twitter brand

      X moves to block bid to revive Twitter brand

      17 December 2025
      Oracle’s AI ambitions face scrutiny on earnings miss

      Oracle’s AI ambitions face scrutiny on earnings miss

      11 December 2025
      China will get Nvidia H200 chips - but not without paying Washington first

      China will get Nvidia H200 chips – but not without paying Washington first

      9 December 2025
    • In-depth
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      Canal+ plays hardball - and DStv viewers feel the pain

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
    • TCS
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
    • Opinion
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » SA avoids a recession

    SA avoids a recession

    By Agency Staff6 September 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    economy-gdp-growth-640

    South Africa’s economy avoided a second recession in seven years as mining and factory output rebounded.

    GDP rose an annualised 3,3% in the second quarter, compared with a 1,2% contraction the previous three months, the statistics office said in a report released on Tuesday in Pretoria. The median of 19 economist estimates compiled by Bloomberg was for 2,6% growth. The economy expanded 0,6% from a year ago.

    Political turmoil, fuelled by reports that finance minister Pravin Gordhan may be arrested and statements by ANC officials that some of the the Reserve Bank’s powers should be reconsidered, could overshadow the news of the economy rebounding in the second quarter.

    While factory output and retail sales expanded in the three months through June, the purchasing managers’ index fell below the neutral level of 50 last month, indicating future contraction in the manufacturing industry, and business confidence remains close to 13-year lows.

    Recent political events “detract from confidence and it detract from investment and it does detract from consumption,” George Glynos, MD and chief economist at ETM Analytics in Johannesburg, said by phone. “People just tend to become a lot more conservative with their spending behaviour and their investment behaviour when they don’t have confidence in the future.”

    Manufacturing, which accounts for about 13% of the economy, expanded at an annualised 8,1% and mining output increased by 11,8%, the statistics office said. Agriculture contracted by an annualised 0,8%, the sixth consecutive quarter of decline.

    Low commodity prices, the worst drought in more than a century and weak export demand have weighed on Africa’s most industrialised economy and it will probably not expand at all this year, according to the central bank.

    That complicates the task of the government seeking to reduce a 27% jobless rate and stave off a downgrade to junk by credit-rating companies who have said slow growth is a major risk for the nation’s creditworthiness.

    Since being reappointed in December, Gordhan has led the government’s efforts to retain an investment-grade debt assessment by meeting with business and labour leaders and investors to seek measures to boost growth and confidence.

    Gordhan returned to the post he held from 2009 until 2014 after President Jacob Zuma was forced to alter a decision to replace Nhlanhla Nene as finance minister with little-known lawmaker David van Rooyen.

    There is a risk that the ANC could turn to a more populist approach to address rising voter dissatisfaction after its worst election performance since Nelson Mandela led the party to power in 1994, Fitch Ratings said after the 3 August Aug local government vote.

    The rand has lost almost 6% against the dollar since the first reports on 22 August that Gordhan was summoned by police in relation to possible espionage charges for setting up a unit in the South African Revenue Service to spy on politicians when he headed the tax agency between 1999 and 2009.

    The rand gained 1,2% to R14,21/US$ by 11.57am in Johannesburg. Yields on rand-denominated government bonds due in December 2026 fell by five basis points to 8,82%.  — (c) 2016 Bloomberg LP

    • Reported with assistance from Simbarashe Gumbo


    Jacob Zuma Pravin Gordhan Statistics South Africa Stats SA
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleAltron set to return to profit
    Next Article Is anyone actually running South Africa?

    Related Posts

    ICT BEE fight deepens as MK, EFF target Malatsi - Colleen Makhubele

    ICT BEE fight deepens as MK, EFF target Malatsi

    15 December 2025
    Bain shuts scandal-tainted South African consulting business - Jacob Zuma

    Bain shuts scandal-tainted South African consulting business

    30 July 2025

    Zuma daughter to face terrorism incitement charges over social media posts

    29 January 2025
    Company News
    Why TechCentral is the most powerful platform for reaching IT decision makers

    Why TechCentral is the most powerful platform for reaching IT decision makers

    17 December 2025
    Business trends to watch in 2026 - Domains.co.za

    Business trends to watch in 2026

    17 December 2025
    MTN Zambia launches world's first 4G cloud smartphone solution - Huawei

    MTN Zambia launches world’s first 4G cloud smartphone solution

    17 December 2025
    Opinion
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Koos Bekker sells R2.5-billion in Naspers and Prosus shares

    Koos Bekker sells R2.5-billion in Naspers and Prosus shares

    23 December 2025
    Tribunal clears Vumatel's takeover of Herotel - with conditions

    Tribunal clears Vumatel’s takeover of Herotel – with conditions

    23 December 2025
    Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

    Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

    23 December 2025
    Netflix launches Afcon football show, hinting at bigger sports ambitions

    Netflix launches Afcon football show, hinting at bigger sports ambitions

    23 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}