* Q3 GDP expands by 66.1% Q/Q
* Mining, manufacturing up over 200%
* Rand, bonds agency after information (Provides particulars, market response, analyst)
PRETORIA, Dec 8 (Reuters) – South Africa’s financial system rebounded strongly within the third quarter as coronavirus restrictions had been eased, with mining and manufacturing main an growth throughout all sectors.
Africa’s most superior financial system was in recession earlier than the COVID-19 pandemic hit, with a strict lockdown from the top of March resulting in a deeper financial contraction.
Statistics South Africa mentioned on Tuesday that gross home product expanded by 66.1% in seasonally adjusted, annualised phrases in July-September from the second quarter, when the financial system shrank by a revised 51.7% as lockdowns stalled exercise.
In contrast with the identical interval a 12 months earlier, GDP shrank by 6% within the third quarter after a revised 17.5% contraction in Q2.
Analysts polled by Reuters had predicted a 52.6% growth in quarter-on-quarter phrases, whereas a 7.2% contraction was anticipated year-on-year.
The rand prolonged features after the info, to commerce 0.73% firmer at 15.0300 versus the greenback as of 1105 GMT. Authorities bonds additionally firmed.
All sectors expanded, with main sectors registering the most important progress. Mining jumped 288.3%, manufacturing was up 210.2% and commerce rose 137%.
“While you get a scenario the place there may be excessive disruption in a selected quarter … then annualisation may give you a barely distorted determine. We now have seen that with COVID-19,” mentioned Joe de Beer, Stats SA’s director basic for financial information.
“It isn’t cheap to imagine that this magnitude of restoration will proceed for the remainder of the 12 months … what’s vital to have a look at is the expansion within the first three quarters.”
Within the 9 months to September, GDP contracted 7.9% in year-on-year phrases.
The outlook stays bleak, with the central financial institution predicting final month that the financial system would contract 8.0% in 2020.
South Africa has the best fee of recorded COVID-19 instances on the continent, with greater than 8000,000 confirmed instances and over 22,000 associated deaths and the chance of a resurgence.
President Cyril Ramaphosa introduced new restrictions within the Japanese Cape province on Thursday, however stopped in need of a wider crackdown.
“Issues a few second wave of COVID-19 in addition to harsh fiscal austerity plans pose rising headwinds to the financial system,” mentioned Virág Fórizs, Africa economist at Capital Economics, including that newer figures recommended the rebound in financial exercise had slowed. (Reporting by Mfuneko Toyana; writing by Olivia Kumwenda-Mtambo; modifying by Catherine Evans and Philippa Fletcher)