JOHANNESBURG – South Africa’s economic growth data for the rest of the year is likely to be disappointing, with only two of 14 indicators assessed in order to gauge the health of the economy showing improvement during the third quarter, professional services company PwC said on Monday.
In a report issued on the eve of Statistics South Africa releasing Q3 gross domestic product numbers, PwC said its assessment was in line with a warning from the South African Reserve Bank in November that indicators suggested economic activity would remain weak for the rest of the year.
The economy, which has languished below one percent annual growth over the past decade, expanded by 3.1 percent quarter-on-quarter in Q2, allowing South Africa to ward off a technical recession after a contraction in the first quarter.
But PwC said a look at the recent quarter-on-quarter and year-on-year growth data for industries covering around three quarters of the South African economy pointed to further gloom.
Out of the 14 indicators, only two – wholesale trade and civil construction confidence – showed improvement during the third quarter.