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Analysts confident GDP numbers will show SA out of recession

Economic recession graph
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Analysts expect the third quarter Gross Domestic Product (GDP) numbers will show that South Africa has come out of its technical recession.

Stats South African will release the figures on Tuesday.

The country fell into recession in the second quarter on the back of a dismal performance in the agricultural sector.

A recession is characterised by two consecutive quarters of negative growth.

Improved performance in the retail, wholesale and manufacturing sectors are expected to contribute significantly to the recovery in the third quarter.

Economist at Econometrix, Sam Rolland says while there’s a recovery, the economy still remains very weak.

“Indicators coming out in the third quarter proving largely supportive of a recovery into positive growth.  We are likely to see still weak growth around 1 percent going forward but contributing factors towards this have been a surprising performance and uptick in manufacturing and the trade sectors which is of course retail and wholesale trade.”

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