CD South Africa: GDP’s – The good, the bad and the ugly
Currencies Direct November 26th 2014 - < 1 minute read
THE GOOD: South Africa's GDP is a whopping 4.4 per cent larger when rebased with the new formula, also showing that we beat expectations with 1.4 per cent growth in the third quarter! The numbers also showed that the mining sector has finally recovered from its strike nightmare. All things remaining the same, we should see healthy growth for the final quarter of the year. THE BAD: Unfortunately the revised calculation also showed that growth in the beginning of the year was a bit worse than initially thought. THE UGLY: Eskom. Fears of a disrupted power supply seem to be a sneeze threatening to turn into a cold for our economy and do not bode well for investor sentiment. Yesterday the US also showed really strong GDP numbers but today it's the UK's turn to put their cards on the table.
Commentary by Danie Strijdom