The South African economy grew by 4,2% in the first quarter of this year, Statistics South Africa announced on Tuesday.
”According to preliminary indicators, the seasonally adjusted real GDP prices for the first quarter of 2006 increased by an annualised rate of 4,2% compared with the fourth quarter of 2005,” it said.
It said the growth of gross domestic product was ”mainly due to increases in the real value added by finance, real estate and the business services industry [1,7 of a percentage point]”.
The report said wholesale and retail trade, hotels and restaurants rose by 0,7% and manufacturing also contributed 0,7 of a percentage point. Transport and communications accounted for 0,5 of a percentage point.
Africa’s biggest economy is set to grow by about five percent in 2006, possibly even reaching six-percent, according to Finance Minister Trevor Manuel.
”The economic outlook is exceedingly favourable — more promising than has been seen in forty years,” Manuel, who has been in charge of South Africa’s finances for the past decade, had said in his last Budget speech. – Sapa