The South African economy grew by 0.6% in Q4 2024, recovering from a contraction in the previous quarter, thereby dodging recession. Key sectors like agriculture, finance, and trade contributed to this growth, with a 0.9% annual GDP rise following a revised increase in the prior quarter. Overall, the economy expanded by 0.6% in 2024 after a 0.7% rise in the previous year.
In the fourth quarter of 2024, the South African economy displayed growth of 0.6%, marking a recovery from a previously revised contraction of 0.1% in the third quarter. Although the growth rate was below the expected 0.9%, it sufficed to avert the onset of a recession within the country. Key contributors to this positive performance included the agriculture, finance, and trade sectors, which all demonstrated growth.
On an annual basis, the gross domestic product (GDP) increased by 0.9% in the fourth quarter, succeeding an upward revision that showed a 0.4% rise in the prior quarter. Overall, the economy experienced a 0.6% expansion throughout 2024, following a revised growth rate of 0.7% in the previous year. These figures collectively reflect a gradual recovery, positioning South Africa away from recessionary pressures.
In summary, South Africa’s economy successfully avoided recession with a growth of 0.6% in Q4 2024, despite falling short of forecasts. Positive contributions from key sectors such as agriculture, finance, and trade bolstered the economy, leading to an annual GDP increase. The economic performance signals a potential recovery trajectory for South Africa, though challenges remain.
Original Source: www.tradingview.com
