South Africa’s economy recovers from recession in second quarter

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PRETORIA (Reuters) – South Africa’s economy emerged from a technical recession in the second quarter as it expanded 2.5 percent after contracting by a revised 0.6 percent in the first quarter, Statistics South Africa said on Tuesday.

Africa’s most industrialised economy entered recession in March after two consecutive quarters of contraction, but growth in agriculture in the three-months to end June supported a recovery.

Gross domestic product rose 1.1 percent on an unadjusted year-on-year basis in the second quarter, compared with 1.0 percent expansion in the previous three months, the agency said.

Economists polled by Reuters had expected a quarter-on-quarter GDP expansion of 2.1 percent and a year-on-year expansion of 0.4 percent.