Reserve Bank Suggests Slow Growth In South Africa Economy

20 March 2012 12:15pm - Florence Fullalove

Reserve Bank Suggests Slow Growth In South Africa Economy

The South Africa Reserve Bank has released a bulletin for the fourth quarter of 2011 and it shows that South Africa’s economy experienced slow yet steady growth. The economy expanded at a significantly higher growth rate in the last quarter of last year and the gross domestic product grew at an annualised rate of 3.2% in this quarter, up from 1.7% in the previous quarter, as activity in mining and manufacturing recovered. The disappointing figures for the third quarter probably have a lot to do with strike activity and other disruptions. Chief economist Monde Mnyande has said, “The picture of the South African economy that emerges from the analysis is slightly more positive than the snapshot taken three months earlier.”

In its March quarterly bulletin the central bank said, “Relative to the country’s GDP, the deficit on the current account decreased from 4.1% in the third quarter of 2011 to 3.6% in the fourth quarter.” According to the bulleting, the deficit was helped by lower dividend payments to non-residents.

Foreign direct investment into South Africa, Africa’s biggest economy, increased significantly to R18.7 billion in the fourth quarter, compared with an inflow of R2.8 billion in the previous quarter. The bank said that the capital inflows came mainly from Britain and China and were largely directed towards the mining, communications and financial intermediation sectors.