Business Maverick: South Africa’s Q2 growth beats expectations as mining recovers

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Business Maverick: South Africa’s Q2 growth beats expectations as mining recovers By Reutersreuters

* Eskom debt weighs on ratings prospects After a downturn in the first half of 2018 when farming plunged, the economy has struggled to regain momentum, posting a shock contraction in the first quarter of this year.

The second-quarter growth was the highest since the fourth quarter of 2017. Year-on year GDP growth was 0.9% compared with zero previously.The data showed mining output grew by 14.4% in the second quarter, after declining by 10.8% previously. Manufacturing output rose 2.1%, rebounding after declining 8.8% in the first quarter.

Fixing Eskom, which supplies more than 90% of the power in South Africa, is one of the biggest challenges Ramaphosa faces. The government said it would give Eskom 59 billion rand of additional financial support over the next two years, on top of an already-promised bailout of 230 billion rand spread over the next decade.

 

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