THE economy grew at a faster pace than expected in the first quarter of 2010 after last year's downturn, although financial woes in Europe could undermine future expansion.
Statistics SA said yesterday quarter-on-quarter gross domestic product was up 4,6percent on a seasonally adjusted and annualised basis, partly boosted by preparations for the World Cup, compared with a 3,2percent rise in the fourth quarter.
The local economy expanded by 1,6percent year-on-year unadjusted, from a 1,4percent decline previously.
Growth was led mainly by manufacturing and mining, which grew 8,4percent and 15,4percent respectively. Both sectors shrank at a record pace in the first quarter of 2009, leading the economy into its first recession since 1992.
The first quarter 2010 outcome beat a consensus forecast of 4,3percent growth quarter-on-quarter from 19 economists who saw a 1,4percent rise on a year-on-year basis. - Reuters and I-Net Bridge