South Africa’s economy grew by 3,2% in the second quarter of 2010 on a seasonally adjusted and annualised basis, compared to 4,6% rise in Q1, data showed on Tuesday.
The economy expanded by 3% year-on-year unadjusted, compared to 1,6% in the first quarter of 2010.
A Reuters poll of 16 economists last week forecast a 3,6% GDP growth in Q2 on a seasonally adjusted and annualised basis, and saw a 3,1% rise on a year-on-year basis unadjusted.
Azar Jammine, economist at Econometrix, said he was not particularly disappointed, as the figure was exactly in line with his expectations.
“The figure does suggest and confirms the view that we had that the first quarter growth of 4,6% was a high in the cycle and we’re losing momentum from there but that is very much in line with the global economy.”
Eliza Kruger, an economist at KADD Capital, said the figure was disappointing, given the windfall of the Soccer World Cup.
“The figure will keep us guessing going into next month whether the MPC will cut or hold interest rates. The number is not too weak but also is not too strong to justify the cut.” – Reuters, I-Net Bridge