South Africa Avoids Recession as Mining Rebounds

The video discusses South Africa's GDP growth of 3.3% in the second quarter, contrasting with a 1.2% contraction in the first quarter. Despite this positive growth, analysts warn of weak underlying economic factors. The South African Rand strengthened significantly, leading global currencies, and local government bonds also saw gains. The South African Reserve Bank is expected to meet soon, with potential implications for interest rates.

What was the GDP growth rate in the second quarter?

• 1.2%

• 2.6%

• 5.0%

• 3.3%

Which sector experienced an 8.1% increase?

• Services

• Construction

• Manufacturing

• Agriculture

What is one of the challenges that may affect future growth?

• Drought conditions

• High commodity prices

• Rising inflation

• Increased consumer spending

How did the South African Rand react to the positive growth news?

• It weakened by 2.6%

• It remained stable

• It strengthened by 2.6%

• It lost value against the dollar

What might the South African Reserve Bank decide regarding interest rates?

• Double the current rates

• Increase rates by 1%

• Decrease rates by 0.5%

• Leave rates unchanged