Following the announcement of data from StatsSA that the South African economy grew of 0.1% in Q4 2023, the rand strengthened against the dollar.
According to Anchor Capital, the South African rand strengthened against the dollar, after data indicated that the SA economy grew marginally in Q4 2023.
Andre Cilliers, currency strategist at TreasuryONE said: “The rand managed to break below the R19 level yesterday after local GDP numbers showed the country avoiding a technical recession, while the currency also got some support from a new record high for gold.“
On Wednesday at 5.30am, the dollar is traded marginally lower against the South African rand at around R18.95.
In regards to European currencies, the euro traded 0.1% lower at around R20.5712 while the pound has declined 0.2% against the rand to trade at around R24.0473.
Yesterday at 5.30am, the dollar traded 0.1% higher against the rand at R19.07.
SA economic growth
The real gross domestic product in the Q4 2023 was R1.158 billion was still below the peak of R1.161 billion recorded in Q3 2022.
Six industries kept the South African economy in the green for Q4 2023 including the transport, storage and communication industries which made the biggest positive impact.
These three industries expanded by 2.9% and contributed 0.2% to the growth of the GDP.
Mining production was up by 2.4% and was pushed higher by stronger production figures for platinum group metals, chromium, ore, coal and diamonds.
Electricity, gas and water had a second consecutive quarter of positive growth and expanded by 2.3%. South Africa experienced fewer days of load shedding in Q4 2023 in comparison to Q3.
IOL Business