From Reuters via SABC

South Africa should dodge a recession this quarter, as mining strikes that derailed the economy during the first months of the year near a resolution, a Reuters poll found on Tuesday.

The chances the economy will slip into recession this quarter are just 30%, according to the poll taken in the past week, although the vast majority of economists did not expect investor confidence to improve this year.

Growth will be stuck at 1.9% this year, similar to last year’s rate, but far from the 2.3% predicted in a May survey, the median of 32 economists suggested.

South Africa’s platinum producers and the workers’ union have agreed on a broad wage offer to end a protracted strike. Details such as the time frame and additional benefits remain to be settled, Impala Platinum said on Tuesday.

“A resolution to the strike action that has ravaged the mining sector may soon be close but, even so, production will take some time to come back online,” said Shilan Shah of Capital Economics in London.

The five-month strike has hit output at mines that normally account for 40% of global platinum supply and threatened to drag Africa’s most advanced economy into recession.

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