SOUTH AFRICA's economy in the second quarter grew by three per cent year on year and by 3.2 per cent over the previous quarter, despite the push from the soccer World Cup and the tourist traffic in June.

The nominal value added to the South African economy in the second quarter was ZAR657 billion (US$89.5 billion) compared to ZAR30 billion added in the first quarter, according to the government's Statistics SA (StatsSA) agency.

The manufacturing sector, which accounts for 15 per cent of South Africa's economy grew by only 6.9 per cent in the second quarter compared to the 8.4 per cent increase in the previous quarter but grew by 7.9 per cent in the first half of the year, reported London's Containerisation International. Retail and services growth picked up by 5.8 per cent over the previous quarter. Overall quarterly growth fell short of many economists' projection of 3.5 per cent to four per cent growth.

It appeared that growth slowed down due to the "damaging" Transnet port and rail strike, which "seriously disrupted" domestic cargo flow and impacted global trade. The citrus exporters who saw the start of the export season clash with the strike incurred losses, according to the report