South Africa’s Economy Grows 0.6% in Q4 2024, Avoids Recession

South Africa’s economy grew by 0.6% in Q4 2024, recovering from a contraction in Q3. This growth, although below the forecast, prevented a recession. Key sectors contributing to this growth included agriculture, finance, and trade, with a year-over-year GDP increase of 0.9%. Overall, the economy expanded by 0.6% in 2024.

In the last quarter of 2024, South Africa’s economy experienced a growth of 0.6%, following a revised contraction of 0.1% in the prior quarter. Although this growth fell short of the anticipated 0.9%, it successfully averted an economic recession for the country. Positive expansions were recorded in key sectors, particularly agriculture, finance, and trade.

On a year-over-year basis, the Gross Domestic Product (GDP) demonstrated an increase of 0.9% in Q4, building upon a revised growth figure of 0.4% in the previous quarter. Over the entirety of 2024, the economy grew by 0.6%, a decrease from the revised rise of 0.7% recorded the preceding year. These figures indicate a modest but positive trajectory in the economic landscape of South Africa.

In summary, South Africa’s economy exhibited resilience by growing 0.6% in the fourth quarter of 2024, consequently avoiding a recession. The growth, though slightly below expectations, reflects improvement in critical sectors such as agriculture, finance, and trade. Overall, the annual economic growth rate of 0.6% signals a cautious but optimistic outlook for the country’s economy.

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