South African GDP contracts
Figures released today show the South African economy shrank at an annual 3% in the second quarter, with the pace of contraction slowing from 6.4% in the first quarter. The 3% drop was slightly less than market expectations, after the South African economy hit rock bottom in the first quarter as global trade ground to a halt.
The South African finance minister commented that recovery is likely to be slow and weak, with expectations that growth will remain in the 2.5-3.5% region for several years to come.
The manufacturing sector also fell -10% in the second quarter, trimming gains from a -22% contraction previously, though the mining industry recorded an expansion. Commodity exports could help pave the way out of recession for South Africa, an economy which is highly commodity and export dependent.
Exchange rates for the South African rand are currently trading at 13.32 per GBP and 8.04 per USD.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.