Finance

South Africa posts surprise growth in Q3, but investors remain cautious

South Africa posts surprise growth in Q3, but investors remain cautious
Wednesday, 09 December 2020 16:54

While the South African economic data announced an unexpected growth of the gross domestic product during the third quarter of 2020, the main stock market index of the local financial market experienced its first decline in 6 sessions, we noted. The FTSE South Africa, which includes all companies listed on the Johannesburg Stock Exchange, was down 0.5% on Tuesday, December 8, 2020.

However, GDP jumped by 13.5% during the third quarter, compared to the previous quarter. This performance was driven by the rise in industrial production (+210.2%). With the easing of lockdown measures, activities resumed in the agro-industrial sector thanks to household consumption, which grew by 70%.

For example, there was an increase of more than 7,000% in the revenues of restaurants and hotels, and 673% for drinks and other alcoholic products. The fall in the main indices of the Johannesburg Stock Exchange can be attributed to a cautious reallocation of resources in investment portfolios.

The economic recovery is opening up new prospects and the financial products that have served as a refuge are beginning to be sold off. However, investors keep in mind that this exceptional growth is also linked to the impact of covid-19 on the South African economy. Despite its current rebound, the country's GDP has fallen by 6% since the beginning of the year.

Idriss Linge

On the same topic
• Bassirou Diomaye Faye denounces credit rating agencies’ methodologies as ill-suited to African contexts.• Senegal urges reforms to enable fairer...
(AfDB)-The Board of Directors of the African Development Bank Group has approved a $474.6 million loan for South Africa's Infrastructure Governance...
New card enables African payments without using US or European networks Aims to lower costs, protect financial data, and boost intra-African...
• Burkina Faso-based financial group, Vista Group Holding, has acquired a majority stake in Société Générale Burkina Faso (SGBF).•The move is part of...
Most Read
01

Lebara Group is now bringing its affordable and reliable mobile services to Africa, starting with Ni...

Telecoms: Lebara Enters Nigerian Market with Strong Competitive Ambitions
02

• Maritime sector faces renewed risks amid military tensions in the Middle East• Blockade fears at S...

Israel-Iran conflict raises new threats for global shipping and oil trade
03

• Gates Foundation commits $1.6 billion over five years to Gavi.• Bill Gates warns of rising ch...

Gates Foundation Pledges $1.6 Billion to Gavi to Boost Global Child Vaccination
04

In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...

In Five Years, Francophone Africa Will be A Major Force in African Tech –Régis Bamba
05

Transport and food prices have been climbing steadily across Africa in recent years. In Côte d’Ivoir...

Côte d’Ivoire’s Fuel Price Cuts Haven’t Slashed Transport Costs–Yet
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.