The Economy The air up there
Whohoohooohoohoooah! That, my friends, is the sound of the South African economy rocketing out of recession and roaring skyward on +2.2% growth! Preach!!! So what got us there? Manufacturing, that’s what. Just your standard production of basic iron and steel and other metal products and machinery; wood and paper; petroleum products; and motor vehicles, which grew +7.5% in the third quarter, its biggest jump since 2016. This was closely followed by agriculture, driven by strong growth in the production of field crops, horticultural cultivation and animal products at +6.5%, then transport, storage and communications at +5.7%, and finance, real estate and business services at +2.3%. Trade, under which we must assume falls this great sector we call home, came in at a solid +3.2%, which augurs well for a more robust fourth quarter, encompassing as it does those great spiritual holidays of Christmas, Hanukkah and Black Friday. On the downside: mining shrank by -8.8%.
Comment: This is very good news. Not a panacea, by any means, but it shows there’s life in the old fiscus yet.