SA economy grew in 0.8% in 2018

Stats SA announced on Tuesday that South Africa’s economy grew by 1.4% in the fourth quarter of 2018.

The figure is slightly up from 0.6% in the previous quarter. 

Stats SA’s deputy director general Joe de Beer briefed media in Pretoria on Tuesday.

Also Read: Shots fired during Soweto taxi violence

He says the three main contributors to the figure were manufacturing, agriculture and transport.

"It also gives us the opportunity to look at 2018 as a complete year and there the growth is estimated at 0,8 %. 

"The biggest contributors to the growth in the fourth quarter came from the agriculture industry, as well as transport and manufacturing industry.

"On the downside, we had negative growth from the mining industry," said De Beer.

Meanwhile, chief economists at Econometrix Azar Jammine says this comes as a relief because most economists feared the number would be weaker than the previous quarter. 

Jammine adds that his disappointed that capital investments decreased in the fourth but says what save the day was that consumer spending increased by 3,2 from 1,6 in the third quarter. 

"Unlike some of the previous releases of the GDP, the fourth quarter GDP release is very much in line with expectation, the 1,4% quarter on quarter analysis growth is dead in line to what we anticipated and so much to is the 0,8% year on year growth.

"The fact is if your capital investment continues to subside, this way the economy is getting older and older, the infrastructure is declining and that leads less ability and capability to achieve higher sustainable growth in the long term.

"One is relieved with the figures that they weren't any worse, that they were in line with expectations, but they didn't reflect a great economy," says Jammine.