By Hassan Isilow
JOHANNESBURG (AA) - South Africa’s economy has moved out of a recession with its Gross Domestic Product (GDP) growing by 2.5 percent in the second quarter of the current year, a government body announced Tuesday.
Africa’s most industrialized economy said in June it had slipped into a technical recession after its GDP decreased by 0.7 percent during the first quarter of 2017.
Statistics South Africa announced on Tuesday that agriculture, fisheries and forestry were a major contributor to lifting of the country’s GDP with increased production of 33.6 percent.
“The rise in the second quarter was mostly driven by a rise in the production of field crops, in particular maize and wheat, as well as increased production of horticulture products such as vegetables,” the statement said.
The finance industry was the second largest contributor to GDP growth in the second quarter of 2017, growing by 2.5 percent and mining expanded by 3.9 percent.
Experts say the new growth figures will relieve pressure on South Africa, which has been struggling to address its slow economic growth due to political uncertainty and low commodity prices.
According to Statistics South Africa, the country has experienced eight economic recessions since 1961, with the longest occurring in 1991-1992, due to a global economic downturn.
The country also witnessed a recession in 2008-2009 when it was caught up in the global financial crisis.