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South Africa GDP rebounds in Q2, avoids recession

South Africa avoided a second consecutive recession in the second quarter, following a recovery in mining and finance, data from Statistics South Africa showed.

Real GDP grew 3.1% in the second quarter, after a revised 3.1% contraction in the first quarter. The growth was centered around stimulus in the mining, finance, trade and general government services.

The mining industry accelerated 14.4%, while finance, real estate and business services industry rose 4.1%. Meanwhile, the trade, catering and accommodation industry climbed 3.9% and general government services increased 3.4%.

South Africa's GDP fell in the first quarter of the year, the steepest quarterly drop in 10 years. In July, the South African central bank forecast second-quarter growth prompted by a rebound in mining and manufacturing, but revised down its 2019 GDP growth forecast to 0.6% from 1.0%, citing a "persistently uncertain environment."

Fitch Ratings revised the country's outlook to negative in July, based on an expanding budget deficit linked to bailouts of debt ridden state-owned firms.