[Okonkwo]

South African economy emerges from recession

South Africa has emerged from recession after its economy returned to growth between July and September.

Africa's biggest economy grew by an annualised, seasonally adjusted rate of 0.9% during the quarter, compared with the previous three months.

This represents the first growth in nine months, ending the country's first recession since 1992.

A strong manufacturing sector was largely responsible for the return to growth, Statistics South Africa said.

The sector grew by 7.6% during the quarter compared with the previous quarter. Construction also performed well, growing by 6.1%.

The construction sector has been boosted by the upcoming World Cup, which takes place in South Africa next year.

The country's economy slipped into recession in the final quarter of 2008, and contracted by a revised 7.4% between April and June.

The annualised rate shows what the annual rate would be if the latest change (either annual or quarterly) continued for the rest of the year.

© BBC MMIX

It is good to hear that the South African economy is back on track again. It seems that the World Cup brings its benefits.

[Aekos]

The real question is, how detrimental is BEE to the economy?

[Okonkwo]

how detrimental is BEE to the economy?

Not more than any "economic empowerment" programme benefiting one kind of people over another. The outcome of the state trying to enforce "social justice" is almost always negative.

[Ombrageux]

This this success was achieved thanks to manufacturing is very encouraging.

[H8w0w8H]

It seems that the World Cup brings its benefits

Unfortunately, you couldn't find an economist who thinks hosting sporting events has any benefit to the economy

how detrimental is BEE to the economy?

I'd say not at all,
BEE basically just affects the public sector, the guys running it are usually very well educated, most of whom have studied and worked in the states or UK. Although at least in terms of university applications its time to shift the policy to something class based.

Blaming SAs woes on BEE and hence reducing political debate to race issues, is an easy way of dodging the huge economic problems that face the country. Within the next 5 years SA looks set to follow a path of hyper-inflation which could destabilize all of Southern Africa unless radical reform of the economy is undertaken.

[Okonkwo]

Unfortunately, you couldn't find an economist who thinks hosting sporting events has any benefit to the economy

It is far from being that one-sided. The World Cup has a lot of potential, it can attract investors, create thousands of new jobs, South Africa can (and will) use the money provided to them by FIFA to build infrastructure and an airport, the expected visitors will also do good.
In that sense, while it is a costly and risky enterprise, if South Africa plays its cards right, the World Cup is quite the chance.

[H8w0w8H]

yeah we're all hyped about it but as I said there's not an economist on the planet who thinks that hosting a sporting event actually generates income

obviously its a source of pride but
how's it gonna stop a 35% increase in electricity prices?

[Okonkwo]

yeah we're all hyped about it but as I said there's not an economist on the planet who thinks that hosting a sporting event actually generates income

This is not the point of a sporting event. It would be like saying dogs are useless because they don't give milk, it's non sequitur.
The point of the World Cup is to gain prestige, attract investors and build South Africa, something which can very well be done.

[H8w0w8H]

the South African economy is back on track again. It seems that the World Cup brings its benefits

This is not the point of a sporting event.

[Okonkwo]

Precisely, the South African economy is back on track, which has been catalysed by the projects that were begun due to the World Cup.
Consider that the construction sector has been boosted by it. I fail to see the point of denying that, as I do in continuing this discussion. It is fairly trivial matter and I think I have adequately explained why it is very much possible that the economy of a developing country can benefit from hosting a World Cup due to a number of reasons.

[H8w0w8H]

the South African economy is back on track,

at the end of 2009

which has been catalyzed by the projects that were begun due to the World Cup.Consider that the construction sector has been boosted by it

ah yeah those stadiums that were pretty much finished in time for the confederations cup

last year



just to negate the tourism point

500,000 fans will come for the world cup

which is the average number of visitors who come here per month anyway

[Okonkwo]

Did you actually read my post? Once again: the World Cup has fuelled the economy and might prove an opportunity for South Africa.
There really is no point in denying these facts.

[Nandi]

A weak rand will have also substantially added to growth.

[Brio]

It would be like saying dogs are useless because they don't give milk

"Red rocket, red rocket."

The point of the World Cup is to gain prestige, attract investors and build South Africa, something which can very well be done.

As a Canadian, the debate of whether hosting a large international sporting event is good for the city or not has been an ongoing one, since the winter Olympics are being hosted in Vancouver. The example of failure is ever apparent in Montreal as the tax payers their have just now payed off their Olympic games of 1972. However, in the same vein I believe Calgary fared much better in this regard, so their are success stories to hosting such events.

Here is hoping that this gamble by South Africa will turn out for the best and not turn out to be a noose around the South African's taxpayers necks.

[politburo player]

The outcome of the state trying to enforce "social justice" is almost always negative.

Quite possibly the most truthful statement I have read on here so far... I would like to encounter someone who believes otherwise in regards to SA wealth redistribution.