Some economists believe Q2 GDP growth could be turning point for SA economy

JOHANNESBURG - Some economists believe the GDP growth seen in the second quarter of the year could be a turning point in the country’s business cycle.

The economy grew by a modest 0.4% in the three months through June, following a revised zero growth at the start of the year. 

Stats SA released the latest GDP figures on Tuesday.

READ: GDP: Economy sees growth of 0.4%, thanks to finance, real estate sectors

South Africa's economic growth has often been described as anaemic, with the country’s growth performance too low for too long. 

Load shedding and Eskom’s energy crisis are among factors that crippled a number of industries that drive growth, including mining and manufacturing. 

The latest GDP by Stats SA shows a rebound in manufacturing, which coincides with the moratorium on load-shedding. 

Despite the positive turn, economist at the North West University Business School, Raymond Parsons said the economy was not yet on cruise control. 

He believes the Government of National Unity and the private sector still need to drive key growth-friendly reforms, policies and projects to ensure a much higher and sustainable growth path.