S. Africa's economy narrowly avoids recession, growing 0.7 pct in Q3

South Africa's economy grew by 0.7 percent in the third quarter of 2015, narrowly avoiding a recession, Statistics South Africa (Stats SA) said on Wednesday.

After experiencing a 1.3-percent contraction in the second quarter, the marginal GDP growth in the third quarter staved off a technical recession, Stats SA said in its preliminary estimates of real gross domestic product (GDP).

A recession is usually said to occur if a country experiences two consecutive quarters of GDP decline.

The increase in overall economic activity in the third quarter was characterized by seven of the 10 main industry groups experiencing growth while three others shrank.

The agriculture industry experienced the largest fall in activity, contracting by 12.6 percent. Decreases in the production of field crops, such as maize, sunflower and sugar cane contributed to the industry's decline.

Activity in the mining industry fell by 9.8 percent. Lower production in the mining of coal and other minerals contributed to the decrease.

Electricity, gas and water supply was the third industry to experience a contraction in the third quarter, falling by 8.0 percent.

This was mainly as a result of a decrease in the production and consumption of electricity.

The manufacturing industry grew by 6.2 percent in the third quarter. Increased production of various products, such as food & beverages and wood & paper, contributed to the rise in activity. This followed two consecutive quarters of contraction in manufacturing.

Industries that also experienced growth in the third quarter included finance, trade, personal services, government, construction, and transport.

The South African economy last entered a recession in late 2008 and early 2009, when GDP declined for three straight quarters. Enditem