CAPE TOWN, Sept. 5 (Xinhua) -- South Africa saw a rebound in economic growth to 2.5 percent in the second quarter this year, lifting the country out of recession, according to data released on Tuesday.
This followed a technical recession due to a contraction of 0.6 percent in the first quarter and another of 0.3 percent in the fourth quarter of 2016.
Higher economic activity across most industries, in particular agriculture, finance and mining, lifted the gross domestic product (GDP) by 2.5 percent quarter-on-quarter (seasonally adjusted and annualized), Statistics South Africa (Stats SA) said.
Agriculture continued to show strong recovery from South Africa's recent drought, increasing production by 33.6 percent.
The rise in the second quarter was mostly driven by increasing production of field crops, in particular maize and wheat, as well as increased production of horticulture products such as vegetables.
The finance industry was the second largest contributor to GDP growth in the second quarter, growing by 2.5 percent on the back of higher activity in financial intermediation and auxiliary activities.
The mining industry expanded by 3.9 percent on the back of increased production of coal, gold and other metal ores such as iron ore and manganese ore.
This is the second consecutive quarter of growth for mining, although production was more subdued than the 13.1 percent growth recorded for the first quarter of 2017.
"After two consecutive quarters of decline, the South African economy spluttered back to life in the second quarter of 2017," Stats SA said.
The 2.5-percent rise in GDP brings to an end to South Africa's second recession since 1994.
The news drew immediate applause from the National Treasury.
"Although it is still early to suggest a longer term trend reversal, the data provides a platform that we can all build on for a more shareable growth path," the Treasury said in a statement.
Efforts to bolster confidence as packaged in the 14-point Action Plan, together with continuing work through the economic cluster, should combine to set the country on a higher growth trajectory, the Treasury said.
Finance Minister Malusi Gigaba added his voice to the applause, saying any improvement in economic growth is encouraging.
But he cautioned that it is not yet the time to celebrate.
"We need to remain honest about the major challenges that still face the local economy," he said.
Poverty, unemployment, and inequality which are being underpinned by persistent low growth remain the challenge, said the minister.
