Economic analysts expect a positive set of economic growth figures for the first quarter of this year when Statistics South Africa releases the GDP data on Tuesday.
The boost in growth is expected to have been supported by mining and agricultural output in the period, while positive consumer spending patterns are also expected to the upward momentum.
The inflationary impact of the high oil price emanating from the war in the Middle East is only expected to take effect from the second quarter of the year.
Makwe Masilela of Makwe Fund Managers says: “We hope the likes of mining, which accounts for just under 6% our economy and was up 0.6% in quarter one will at least try to help. Also, when it comes to consumer spending which accounts for almost 60% of our economy, that will also help the situation given that inflation during that period was also manageable and a little bit low, while interest rates were also still decent enough, meaning they were not yet increased, and the impact of this Iran war will only start to filter in quarter two.”
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