In Summary
  • President Cyril Ramaphosa has pledged to revive the listless economy ahead of polls due in May by attracting $100 billion in foreign investment and by fighting corruption.
  • But Finance Minister Tito Mboweni's mid-term budget statement delivered in October slashed South Africa's 2018 growth forecast from 1.5 percent to 0.7 percent.

JOHANNESBURG,

South Africa broke free of recession on Tuesday when it reported GDP growth of 2.2 percent for the third quarter, the statistics authority said, marking a positive economic trajectory ahead of elections.

President Cyril Ramaphosa, who took power in February, has pledged to revive the listless economy ahead of polls due in May by attracting $100 billion in foreign investment and by fighting corruption.

SURGES

The growth, which contrasted sharply with the second quarter's 0.4 percent contraction, was driven by a surge in the manufacturing, agriculture and transport sectors, Stats SA said in a statement.

The announcement follows a strong week for the local rand currency which has benefited from a detente in the United States' trade war with China.

The Rand currency was the second strongest performing of all developing countries against the dollar since Friday, gaining 1.81 percent according to Bloomberg.

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