Photos: Wikimedia Commons
South Africa narrowly avoided a recession after its economy rebounded modestly in the fourth quarter.
In a separate development, the cabinet on Monday agreed on a budget that was abruptly postponed last month after a dispute over a proposed VAT rise that had threatened to unravel the ruling coalition.
The expansion was led by 17% growth in the agricultural sector, compared with the third quarter, while retail and trade also saw an uptick, underscored by the performance of major companies such as the consumer goods giant Shoprite. The retailer’s profit rose 13% to $397 million in the last six months of 2024.
Growing consumer confidence and rising demand could produce modest growth in 2025, according to analysts. But the recovery remains fragile: annual GDP growth of 0.6% in 2024 — the slowest rate since the 2020 COVID-19 pandemic — was down from 0.7% in 2023.
