South Africa’s gross domestic product (GDP) increased by 4.1% in the fourth quarter of 2014, Statistics South Africa (Stats SA) said on Tuesday.
“Real gross domestic product at market prices increased by 4.1% quarter-on-quarter, seasonally adjusted and annualised,” said Stats SA.
This growth was more than what markets had expected.
“GDP growth accelerated by much more than the markets expected in the final quarter of 2014, growing by a seasonally adjusted and annualised 4.1% quarter-on-quarter, up from 2.1% and 0.5% in the third and second quarters respectively and better than the consensus market forecast of 3.7%,” said Nedbank economists.
The largest contribution to the quarter-on-quarter growth of 4.1% was manufacturing that contributed 1.2% based on growth of 9.5%. The mining and quarrying industry contributed 1.1% based on growth of 15.2%. The finance, real estate and business services contributed 0.7% based on growth of 3.5%.
Economic activity in the manufacturing industry reflected positive growth of 9.5% due to higher production in petroleum, chemical products, rubber and plastic products division, among others.
Meanwhile, economic activity in mining and quarrying reflected positive growth of 15.2% due to higher production in the mining of ‘other’ metal ores (including platinum) and ‘other’ mining and quarrying (including diamonds).
The growth in finance, real estate and business services was due to increases in activities in the financial markets and banking.
Over 2014 as a whole, real GDP grew by only 1.5%, down from an already tame 2.2% in 2013.
According to Stats SA, the nominal GDP at market prices during the fourth quarter of
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