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Cape Town - Activity in the South African economy – or at least 78.2% of it – grew 9.7% in the year to April, as shown by the latest barometer information from the Sake24 and BoE Private Clients Barometer.
Economists.co.za economist Mike Schüssler, the compiler of the barometer, said the Western Cape, the Eastern Cape, Gauteng, the Free State and KwaZulu-Natal – the five provinces for which information on economic activity is connected – represent 78.2% of South Africa's economy.
The composite growth index of this South African barometer was 9.7% up year-on-year (y/y) in April.
Schüssler said latest figures indicate that strong first-quarter economic growth began to taper off in the past couple of months.
Sectors like property and construction are still far below levels seen before the recession which impacted the country in 2008 and 2009.
According to Schüssler, the government expenditure driving a large part of current economic growth is not sustainable. Warning lights will flash if in a year or two government spend is still required to keep the economy moving.
Comparing the five provinces, the Eastern Cape still showed the best growth with its barometer rising 15.5% y/y in April. KwaZulu-Natal was next, with growth of 12.69%, followed by the Western Cape with 11.8%, the Free State with 10.6% and Gauteng with 10.2%.
As far as manufacturing is concerned, the Eastern Cape led the pack with 8.7% growth, largely thanks to the recovery in the motor industry. The other provinces' manufacturing indices varied, with growth of between 2% and 4%. All of the provinces, except for the Western Cape, reflected a decline in electricity consumption which, according to Schüssler, indicates efforts to save electricity. The Western Cape was also the only province showing growth in the construction industry.
The transport indices of all five provinces are rising strongly, with Gauteng in the lead with a 24.3% improvement. As for the trade index, the Free State again shines with 17.8% growth compared with the other provinces, whose trade indices are growing 7% to 8%.
In the agricultural sector KwaZulu-Natal showed the only growth in April.
The Gauteng and Free State mining indices are running almost parallel. They showed no month-on-month growth compared to March, and are only a few index points higher than a year ago.
- Sake24
For business news in Afrikaans, go to Sake24.com.
For more news on the Sake24/BoE Private Clients barometers, go to www.fin24.com/barometer.
Economists.co.za economist Mike Schüssler, the compiler of the barometer, said the Western Cape, the Eastern Cape, Gauteng, the Free State and KwaZulu-Natal – the five provinces for which information on economic activity is connected – represent 78.2% of South Africa's economy.
The composite growth index of this South African barometer was 9.7% up year-on-year (y/y) in April.
Schüssler said latest figures indicate that strong first-quarter economic growth began to taper off in the past couple of months.
Sectors like property and construction are still far below levels seen before the recession which impacted the country in 2008 and 2009.
According to Schüssler, the government expenditure driving a large part of current economic growth is not sustainable. Warning lights will flash if in a year or two government spend is still required to keep the economy moving.
Comparing the five provinces, the Eastern Cape still showed the best growth with its barometer rising 15.5% y/y in April. KwaZulu-Natal was next, with growth of 12.69%, followed by the Western Cape with 11.8%, the Free State with 10.6% and Gauteng with 10.2%.
As far as manufacturing is concerned, the Eastern Cape led the pack with 8.7% growth, largely thanks to the recovery in the motor industry. The other provinces' manufacturing indices varied, with growth of between 2% and 4%. All of the provinces, except for the Western Cape, reflected a decline in electricity consumption which, according to Schüssler, indicates efforts to save electricity. The Western Cape was also the only province showing growth in the construction industry.
The transport indices of all five provinces are rising strongly, with Gauteng in the lead with a 24.3% improvement. As for the trade index, the Free State again shines with 17.8% growth compared with the other provinces, whose trade indices are growing 7% to 8%.
In the agricultural sector KwaZulu-Natal showed the only growth in April.
The Gauteng and Free State mining indices are running almost parallel. They showed no month-on-month growth compared to March, and are only a few index points higher than a year ago.
- Sake24
For business news in Afrikaans, go to Sake24.com.
For more news on the Sake24/BoE Private Clients barometers, go to www.fin24.com/barometer.
