South Africa’s economic growth slowed less than expected in the fourth quarter as domestic fixed investment slumped.
Annualised growth in GDP eased to 1.4% in the final quarter from a revised 2.6% the prior three months, Statistics South Africa said on Tuesday. The median estimate of economists surveyed by Bloomberg was for growth of 1.2%. The economy expanded 0.8% in 2018 compared with a revised 1.4% in the prior year.
Expenditure on GDP rose an annualised 1.6%. Household spending rose by 3.2% and fixed capital formation fell 2.5%. The economy expanded 1.1% in the fourth quarter from a year earlier.
Africa’s most industrialised economy hasn’t expanded by more than 2% a year since 2013 and is battling to gain momentum despite political changes in late 2017 and early 2018, as businesses and foreign investors seek real reforms.
President Cyril Ramaphosa’s ability to implement growth-enhancing reforms have been hindered by politics as a faction of his ANC remains aligned to scandal-ridden former President Jacob Zuma.
Ramaphosa must win a strong mandate from the electorate on 8 May to cement his power in the party and government. The government and central bank see the economy expanding by 1.5% and 1.7% respectively in this year. — Reported by Prinesha Naidoo and Amogelang Mbatha, (c) 2019 NewsCentral Media