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South Africa records 4.9% economic growth after 6.4% contraction in 2020

Published

3 years ago

March 9, 2022

Fresh data from South Africa shows the country’s economy grew by 4.9% in the 2021 calendar year after contracting by 6.4% in 2020.

Statistics South Africa said gross domestic product (GDP) grew by 1.2% quarter on quarter in the last three months of 2021 following a contraction of 1.7% in the third quarter.

According to the agency, the expansion in the final quarter of 2021 was driven by a recovery in agriculture and manufacturing.

[ICYMI] A brief look at how the South African #economy performed in 2021.

Read more on the latest #GDP figures here: https://t.co/Ldd9EbiyRP #StatsSA pic.twitter.com/ZReHdnaLK5

— Stats SA (@StatsSA) March 9, 2022

Agriculture expanded by 12.2% quarter on quarter, manufacturing by 2.8% and retail trade sales by 2.9%. But mining contracted by 3.1%, construction by 2.2% and finance by 0.8%.

The South African economy has struggled to gain traction despite promises of sweeping reforms made by President Cyril Ramaphosa after he took office in 2018, with persistent electricity cuts choking growth, among other woes.

2021 recorded an increase compared to a 6.4% contraction in GDP in 2020 when the country entered the pandemic as it was already in recession.

These economic difficulties are reflected in the record unemployment rates recorded in 2021: from 34.9% in October, it reached up to 65% among young people, according to the latest official statistics.

The COVID-19 pandemic disrupted Ramaphosa’s efforts and pressure has built for his government to take corrective action after the unemployment rate hit a record high of nearly 35% last year.

The finance ministry expects economic growth of 2.1% this year, a rate officials and economists have said is far below the level required to make a meaningful dent in unemployment and poverty.

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”