Economic analysts expect positive GDP growth figures for South Africa's first quarter when Statistics South Africa releases the data on Tuesday.
The boost in growth is expected to have been supported by mining and agricultural output in the period. Positive consumer spending patterns are also expected to contribute to the upward momentum. Makwe Masilela of Makwe Fund Managers noted that mining, which accounts for just under 6% of the economy, was up 0.6% in quarter one. Consumer spending, which accounts for almost 60% of the economy, should help given that inflation during that period was manageable and interest rates were still decent enough. The inflationary impact of the high oil price from the war in the Middle East is only expected to take effect from the second quarter of the year. Masilela added that the impact of this Iran war will only start to filter in quarter two.
