Palladium and pear exports helped the South African economy recover from a recession that hit the country earlier in 2018, driving the economy up by the end of the year.
According to Business Insider, South Africa's economy recorded a 0.8 percent growth in the last quarter of 2018, a figure that translates to the country's recovery following a recession earlier in the year that led to slow growth in various industries.
PricewaterhouseCoopers (PwC) economy experts Lullu Krugel and Christie Viljoen said in a report on the country's economic standing that exports in a certain category of platinum metals helped boost last year's figures. "Platinum group metals (PGMs) in particular showed a significant increase in sales, rising by 26.9 percent in the year to December," the report noted.
Palladium, a by-product of platinum, saw a significant price hike last year that pulled up numbers in troubled mining groups within the country. South Africa is a critical palladium supplier to many countries and the price hike is said to have helped improve the local economy following the recession.
Prices of palladium tripled within three years as international carmakers found South Africa a reliable source of the metal. Palladium is used by automakers to manufacture devices that reduce pollution and its popularity continues to balloon as more and more vehicle enthusiasts welcome the idea of anti-pollution devices.
Aside from palladium, fruit exports increased by the end of 2018, encouraging growth figures in the South African economy. PwC's report said, "Gains were seen in fruit categories like oranges, apples and pears, amongst others."
A number of regions in the country suffered through drought but pears and other fruits sold at record highs by the end of 2018, driving the agriculture industry's overall growth figures.
Farming in South Africa struggled in the first half of 2018 but growth was evident by the second half. The sector grew by 7.9 percent in the last quarter despite a drought earlier in the year that cost the SA economy, Reuters reported.
Standard Chartered Bank's Chief Africa Economist, Razia Khan said the agriculture industry's steady performance is expected to help boost the country's overall recovery as farmers explore new models and machinery.
The South African Treasury forecasted a growth percentage of 1.5 for 2019 but analysts noted that the country will be faced with challenges, particularly in electricity supply and the construction sector's decline. Adding to these issues is the lack of confidence among investors due to corruption scandals that emerged over the past months.
