GDP in the first quarter contracted by 1.2 percent, raising concerns of a possible recession.
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On a year-on-year basis, the economy grew 0.6 percent versus a 0.1 percent contraction in the first quarter, the agency said.
Cape Town – The South African economy has staved off a technical recession on Tuesday when Statistics SA announced the economy grew by 3.3% quarter-on-quarter in the second quarter of 2016.
The stronger GDP data, coupled with recent data showing a trade surplus, has provided a reprieve for the rand, buffeted by worries that Finance Minister Pravin Gordhan could be charged over the activities of a unit set up when he was head of the tax department.
Manufacturing also grew, up 8.1 percent quarter on quarter from 0.6 percent previously.
Further, mining and quarrying recovered in the second quarter, increasing by 11.8 percent and contributing 0.8 of a percentage point to GDP growth.
He said household final consumption expenditure increased by 1% in the second quarter, with the main sources of the increase being on miscellaneous goods and services and health services.
The gross fixed capital formation decreased by 4.6%, with the main contributors to the decline being construction works and machinery and other equipment. Gordhan returned to the post he held from 2009 until 2014 after President Jacob Zuma was forced to backtrack on a decision to replace Nhlanhla Nene as finance minister with little-known lawmaker David van Rooyen.
This morning the rand was 0.6% firmer at 14.2950 per dollar at 8.50am versus an overnight close of 14.3800.
The Reserve Bank left its benchmark repurchase rate unchanged at its past two meetings after increasing it by 125 basis points to 7 percent since July previous year as it sought to steer inflation back toward its 3 percent to 6 percent target band.
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