Best news for South Africa’s economy in two years

South Africa’s economy expanded at the fastest pace in two years in the second quarter, lifted by a strong rebound in manufacturing and mining.

Gross domestic product grew 0.8% in the three months through June, compared with growth of 0.1% in the prior quarter, Statistics South Africa said in a report released in the capital, Pretoria, on Tuesday.

That beat the 0.6% median estimate of 13 economists in a Bloomberg survey. 

Eight of 10 sectors expanded in the quarter, including mining, manufacturing and trade — they grew 3.7%, 1.8% and 1.7% respectively.

The momentum is expected to stall in the coming quarters due to US tariffs.

South African shipments of vehicles, citrus fruit and other products to the US have been hit with 30% levies, the highest rate imposed on goods from any nation in sub-Saharan Africa.

Manufacturing data published last week showed factory sentiment has been dampened by subdued business activity and sluggish demand as the tariffs begin to take a toll on exports.