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South Africa's economy remains subdued

Staff writer ▼ | September 17, 2015
South Africa is still experiencing a sluggish economic growth owing to both domestic and international factors, the country's central bank said.
South Africa economy
Africa   Quarterly Economic Review
In its Quarterly Economic Review, the Reserve Bank of South Africa (SARB) said that in the second quarter of 2015 the real gross domestic product contracted at an annualized rate of 1.3 percent, thereby reversing the gains of the positive growth in the first quarter of the year when the economy had increased by 0.3 percent.

"South Africa's economic condition is not quite inspiring at this point in time as a result of huge run in the share prices in China and the general weak global economy. We are waiting with abated breath for the U.S. policy announcement to be made whether there will be a change in the interest rate," said Dr J.P van den Heever, a financial analyst who did the research on behalf of the SARB.

This pedestrian growth was partly caused by the further decline in the international price of commodities, he said.

The real output of the mining sector fell by 6. 8 percent in the second quarter because of weak global demand and short supply of electricity, among others, according to the review.