South Africa exits recession with a 2.5% GDP increase in the second quarter of the year.
The exit of the recession was motivated by the agriculture, forestry and fishing sectors which grew by 33.6% and contributed 0.7% points to the growth of GDP. After surviving the severe drought, the agriculture sector has greatly improved in most parts of the country. Other sectors including Finance, real estate and business services, mining and quarrying, trade, catering and accommodation industry all made impressive increment which have contributed positively into the economy of South Africa. although economists expected GDP growth to leap by 2% in the first quarter of 2017 as compared to the second quarter of 2016.
The breakout from recession might be one of the best things to happen to the economy of the country but further analyses have reported bad news. The retail sector will encounter a bar increase to store prices in the clothing, food and beverages industries amongst others.
More news are still being reported on the effects made by the recent news of the sudden exit from recession. The economists are undergoing critical analysis to further small details and reports on the first quarter as well as how the rest of the year is looking in the financial and business world.
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