Economy continues to grow

South Africa’s gross domestic product (GDP) at market prices increased at an annualised rate of 4,7 percent in the third quarter as the economy continues to grow.

According to Statistics SA, the economy grew from 4,4 (revised from 4,5) percent in the second quarters due largely to increase activity in the finance, real estate and business services industry, the wholesale, retail and motor trade, hotels and restaurants industry.

The seasonally adjusted real annualised value added by the non-agricultural industries increased by 5,1 percent during the third quarter of 2007, following annualised increases of 5,1 percent (revised from 4,6) and 4,4 percent during the first and second quarters of 2007 respectively.

The unadjusted real GDP at market prices for the first nine months of 2007 increased by 5,3 percent compared with the first nine months of 2006. Using the latest preliminary indicators, Statistics SA revised upward GDP for 2006 to 5,4 percent from 5,0 percent.

“The main contributors to the increase in economic activity in 2006 were finance, real estate and business services industry, the wholesale and retail trade, hotels and restaurants industry; manufacturing industry, the transport, storage and the communication industry and the general government service and the construction industry,” Statistician-General Pali Lehohla said in a statement.

“The revised level of the GDP at current prices for the year 2004 is estimated at R1 395 billion, which is R3 billion or 0,2 percent lower than the previous estimate. The estimate for 2005 is R1 541 billion (revised upwards by R2 billion). The independent annual estimate for 2006 is revised by 0,8 percent to R1 741 billion,” Lehohla said.

The GDP estimates are preliminary, and may routinely be revised on the basis of additional evidence that has become available by the time the subsequent quarter’s estimates are released.

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