SA's fourth-quarter GDP beats forecasts

South Africa’s economic growth came in higher than expected in the fourth quarter, boosted by stronger growth in the mining and agricultural sectors, according to data released on Tuesday.

Statistics South Africa said the economy grew by 4,4% in the fourth quarter on a seasonally adjusted and annualised basis, compared with an upwardly revised 2,7% expansion in the third quarter. The market was expecting a 4,2% rise.

The rand currency firmed after the data as the market grew more certain that the central bank’s rate-cutting cycle was over.

On an unadjusted year-on-year basis, the economy expanded by 3,8% from a revised 2,7% in the third quarter, also above a consensus of 3,5%.

The statistics agency said South Africa’s GDP increased by 2,8% in 2010, after a 1,7% contraction in 2009.

“We are now comfortably out of a recession but we are in an area where several things need to take place for the economy to really lift off,” said Rashad Cassim, deputy director general of economic statistics at Statistics South Africa.

Agriculture and mining grew by 12,5% and 17,1% respectively while manufacturing returned to growth with a 4,1% rise after a 5% contraction in the third quarter.—Reuters