Manufacturing's contribution to overall economic activity boosted overall growth to 3.2 percent in the last three months of the year. While the figure is an improvement on second and third quarters' growth, it remains well below the first quarter's 4.6. Brait economist Colen Garrow attributed the improvement to the rand, "which started losing its grip against the US dollar in September".
Garrow added that although the local unit has strengthened somewhat recently, "it never fully recovered to levels seen before last September. Exporters aren't complaining." The rand was bid at R7.53 at 5pm yesterday (Tuesday 28th). Despite the improvement in two crucial sectors of the economy, the outlook is bleak and Finance Minister Pravin Gordhan said in last week's Budget that gross domestic product would grow only 2.7 percent this year, from 3.1 percent last year, citing slow global growth. Fourth-quarter employment figures are not out yet. In the third quarter 179 000 jobs were created and between the third quarters of 2010 and last year 365 000 jobs were added.
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