- Advertisement -spot_img
34.3 C
Lagos
HomeWorldSouth Africa's economy grows 4.9% in 2021, driven by agric sector

South Africa’s economy grows 4.9% in 2021, driven by agric sector

- Advertisement -spot_img

South Africa’s economy expanded in the final quarter of last year driven by a recovery in agriculture and manufacturing, data showed on Tuesday, a boost for President Cyril Ramaphosa who is battling to ignite growth.

The economy has struggled to gain traction despite promises of sweeping reforms made by Ramaphosa after he took office in 2018, with persistent electricity cuts choking growth, among other woes.

Statistics South Africa said gross domestic product (GDP) grew by 1.2 percent quarter on quarter in the last three months of 2021 following a contraction of 1.7 percent in the third quarter.

The economy grew by 4.9 percent in the 2021 calendar year after contracting by 6.4 percent in 2020, the statistics agency said.

READ ALSO: Nigeria’s equity market declines for 5th day in a row

Agriculture expanded by 12.2 percent quarter on quarter, manufacturing by 2.8% and retail trade sales by 2.9 percent. But mining contracted by 3.1 percent, constuction by 2.2 percent and finance by 0.8 percent.

The agency said agriculture recovered after contracting by 20.6 percent in the third quarter, mainly due to increased production of animal products. Manufacturing also recovered in the fourth quarter, after falling by 4.2 percent in the third quarter of 2021.

The COVID-19 pandemic disrupted Ramaphosa’s efforts and pressure has built for his government to take corrective action after the unemployment rate hit a record high of nearly 35 percent last year.

The finance ministry expects economic growth of 2.1 percent this year, a rate officials and economists have said is far below the level required to make a meaningful dent in unemployment and poverty.

In year-on-year terms the economy grew 1.7 percent in the fourth quarter, in line with a consensus forecast. Expenditure on GDP rose 1.3 percent quarter on quarter.

Join Our Mailing List!

* indicates required
- Advertisement -spot_img
- Advertisement -spot_img
Must Read
Related News
- Advertisement -spot_img