South Africa’s economy has started to recover after showing improvement in August, the South African Reserve Bank (SARB) said on Tuesday.
“The composite leading business cycle indicator increased further by 3.7 percent on a month-to-month basis in August, following a 2.6 percent increase in July,” said the SARB, the country’s central bank, in a report.
“It was the strongest reading since January 2010, with all 10 available component time series increasing as activity levels in the economy continued to rebound amid further easing of lockdown restrictions,” the report added.
Increases in the U.S. dollar-denominated export commodity price index contributed most to the increase in the composite leading business cycle indicator in August, the SARB said, adding that the improvement was also supported by a rise in industrial production as well as retail and new vehicle sales.
South Africa’s economy has been under pressure after its growth declined for three consecutive quarters. The country’s economy is projected to contract by over 8 percent this year.
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