South Africa economy edges on recession in Q4

The mining sector has helped the South African economy avoid recession with a growth of 0.1% in the fourth quarter.

The rate is not enough to create jobs for the millions of the unemployed in the country which braces for elections in May.

The key mining industry recorded a 2.4 percent increase in output helped by stronger production figures for platinum group metals, chromium ore, coal and diamonds, the national statistics agency StatsSA said.

Alongside a 2.9 percent expansion in the transport, storage and communication sector, this helped reverse the 0.2 percent contraction the country recorded in the previous three months.

Agriculture, a backbone of South Africa’s economy, shrunk for the first time since 2019, recording a 12.2 percent drop in output last year.

The economy has been slumbering for several years, battered by a prolonged energy crisis resulting in daily power blackouts.

Polls suggest the ruling ANC could lose its parliamentary majority in May for the first time since the end of apartheid.