Strong GDP growth for SA in first quarter

GDP growth in South Africa rose to an annualised quarterly 4.6% in Q1 10 from 3.2% the previous quarter. On a y/y basis, GDP grew 1.6% in Q1 10, the first positive y/y growth since Q4 08.

The impressive growth in Q1 was driven largely through the manufacturing, mining, and finance and real estate industries, which contributed more than half of the headline 4.6% q/q rise in Q1. Looking ahead, we expect quarterly economic growth to remain broadly in line with yesterday’s number, with the risk of perhaps some near-term weakness related to the strike action in the transport sector.