JOHANNESBURG – With mining seen to be driving the local economy, the gold price has made significant gains on Tuesday afternoon trading at near record levels.
This comes with Tuesday's news that Stats SA has reported a significant increase in gross domestic product (GDP) of 4.9% for last year.
The gold price, which is boosting the country’s mines and the uptick in GDP growth, is a positive sign at a time when unemployment is high.
Gold was trading at $2,018. 44 an ounce as of late Tuesday afternoon.
Stats SA said the economy grew by 1.2% in the fourth quarter of last year while the yearly growth rate increased to 4.9%.
The country’s mines have been enjoying high commodity prices that are a boost to the country’s economy and job creation as operations expand.
The prices are being driven by the Ukraine conflict as investors move to safe havens.
And added to this, the manufacturing industry increased by 2.8% in the fourth quarter, contributing point-three of a percentage point to GDP growth.
Eight of the 10 manufacturing divisions reported positive growth rates in the fourth quarter.
The petroleum, chemical, rubber and plastic products divisions made the largest contribution to the increase in the fourth quarter while other sectors such as food, beverages, textiles and clothing also expanded.
Analysts say it was hoped that this would now translate into job creation as the country battled with widespread unemployment.