Rate cut expected as agriculture sees economy clawing itself out of recession

South Africa is out of the recession.

GDP grew by 2.5% in the second quarter of the year after shrinking in the last quarter of 2016 and the first quarter of this year.

Agriculture was the main contributor the economy’s return to growth, growing by 33%.

Ray White (in for The Money Show’s Bruce Whitfield) interviewed Consilium Group economist Gideon Pimstone.

Listen to the interview in the audio below (and/or scroll down for quotes from it).

Year-on-year growth rose to 1.1%.

Gideon Pimstone, Consilium Group

These numbers do take into account seasonal variations.

Gideon Pimstone, Consilium Group

The consumer makes up about 60% of total GDP.

Gideon Pimstone, Consilium Group

We expect another rate cut before the end of the year.

Gideon Pimstone, Consilium Group

Agriculture recovered speedily from the drought.

Gideon Pimstone, Consilium Group

Maize production was extremely good.

Gideon Pimstone, Consilium Group

There are so many uncertainties hanging over this economy.

Gideon Pimstone, Consilium Group

Consumer and business sentiment is still pretty low.

Gideon Pimstone, Consilium Group

Manufacturing is still contracting year-on-year.

Gideon Pimstone, Consilium Group

There isn’t much scope for very direct fiscal stimulus… We need serious structural reform…

Gideon Pimstone, Consilium Group

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