5 reasons the SA economy is out of recession

Source: Fin 24, 04/12/2018

However, despite the rebound, economists still expect overall GDP
growth for the year to be weak, below 1%.
Here`s what boosted growth in the third quarter.
1. Manufacturing industry expands
Growth was mainly driven by the secondary sector, which grew by
4.5%. This was aided by a 7.5% increase in manufacturing. Large
contributions came from steel and metals, and motor vehicle
production, among other things.
2. Agriculture rebounds
Even though the primary sector contracted by 5.4% in the quarter -
mainly due to a large drop in mining - the agriculture industry
rebounded following two quarters of substantial contractions.
During the third quarter, increased production in field crops,
horticultural and animal products, helped improve growth to 6.5%.
Earlier on Tuesday, Bloomberg reported that confidence in the
industry had declined to its lowest in nine years. The
agribusiness confidence index dropped from 48 to 42, mainly due to
concerns over weather conditions and a lack of clarity on land
reform policy.
3. Transport industry rebounds
The tertiary sector grew by 2.6% during the quarter. The
transport, storage and communication industry in particular
expanded by 5.7%, rebounding from a -4.9% contraction in the
second quarter and improving from 0.9% growth reported in the
first quarter.
4. Finance, real estate and business services continue growth
trend
Also within the tertiary sector, the finance, real estate and
business services industry continued its growth trend, increasing
by 2.3% during the quarter.
Additionally, the trade industry - particularly wholesale, retail
and food and beverages - and catering and accommodation increased
by 3.2%.
5. Expenditure-led growth
Expenditure GDP grew to 2.3%, following a decline of -2.6% and
-0.7% reported in the first and second quarters respectively.
Government expenditure grew by 2.2%, while household expenditure
grew by 1.6%.
However, gross-fixed capital formation declined -5.1% during the
quarter, largely due to a decline in investment in construction
works, transport equipment and residential buildings, according to
the StatsSA report.