SARAH BULLEN, Johannesburg | Monday 7.45pm.
GROSS domestic product rose an annualised 0,3% in the second quarter this year, slowing down from a 0,5% growth in the first quarter, the latest figures released by the Central Statistical Service on Monday indicated.
ING Barings chief economist Kristina Quattek said the weak GDP growth figure give an indication of the adverse effect of the recent 6 percentage point hike in prime lending rates on economic performance, with the manufacturing sector being the hardest hit.
The total seasonally adjusted real GDP at market prices increased by an annualised rate of 0,3% during the second quarter of 1998 compared with the first quarter, confirming the continuing slowdown in economic activities that became evident in the third quarter of 1997.
The lower growth was mainly due to the seasonally adjusted real annualised decrease to 2,1% in the secondary sectors such as manufacturing, electricity, gas and water, and construction. The CSS noted that the drop in manufacturing output has decreased and the mining sector seems to be picking up , with the fall in production shrinking significantly to 0,5% compared with 4,7% in the previous quarter.
In the agricultural sector, second-quarter output grew by 1,3%, down from an annualised increase of 4,8% in the first quarter.
The CSS also reported that manufacturing output contracted by 2,8% in the second quarter.
Second quarter gross domestic product from the Central Statistical Service