The South African Rand weakened against the Pound, US Dollar and other major peers after data showed that the African nation’s economy grew at its slowest pace in more than four years in the third quarter of 2013.
According to Statistics South Africa, the continent’s largest economy expanded by just 0.7% in the third quarter a sharp fall compared with the second quarters increase of 3.2%. The figure was also well below economist forecasts for a 1% expansion.
The sharp decline in growth is being blamed on the strikes that have ravaged South Africa’s mining and car making sectors the latter of which accounts for 10% of the nation’s economic output. The threat of rolling black outs and power shortages has also taken a heavy toll on industry.
The strikes in the car industry lasted for seven-weeks and cost producers thousands of vehicles for export, as a result of the strikes the South African manufacturing sector contracted by 6.6% on a quarter-by-quarter basis.
“The third-quarter GDP data shows growth is weak on significant strike-related work stoppages, falling confidence levels, slowing consumer spending due to high indebtedness and moderating growth in real disposable incomes. Growth for the full year of 2013 is likely to be 2%, year-on-year, at best, with a real risk that it could come out lower at 1.8%,” said an economist at Ivestec in an interview with the Financial Times.
The South African economy was also knocked by data showing that business and consumer confidence in the country remains close to record low levels. The Rand also softened against the Euro.
Current South African (ZAR) Exchange Rates:
The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.1042
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 16.3583
The Euro/South African Rand Exchange Rate is currently in the region of: 13.6953
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.2567
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 8.3097
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.5818
(Correct as of 12:00pm GMT)
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