Reserve Bank warns of first-quarter contraction

JOHANNESBURG – The SA Reserve Bank (Sarb) warned yesterday that the country’s economy may have contracted in the first quarter on the back of poor performance in the mining and manufacturing sectors.

Sarb governor Lesetja Kganyago said available data from manufacturing and mining suggested a contraction and not renewed business and consumer optimism.

However, Kganyago said the bank’s growth forecast for the year remained unchanged at 1.7percent with an expected lift from 1.5percent to 1.7percent next year.

“The domestic growth outlook remains challenging, although growth is still expected to outperform recent year outcomes,” Kganyago said.

“This is despite the possibility of a contraction …read more