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<\/a><\/p>\nThe mining industry often takes center stage when South Africa\u2019s economic fortunes dip.<\/p>\n
Its gold industry – once the world\u2019s largest – underpinned the nation\u2019s transformation into the continent\u2019s most industrialized economy.<\/p>\n
Bullion sales cushioned the economy against the impact of the oil-price and dollar collapse in the 1970s and as international outrage against apartheid rule a decade later resulted in massive capital outflows.<\/p>\n
The commodities boom in the 2000s provided the Treasury with a war chest to withstand the devastating effects of the global financial crisis.<\/p>\n
The mining industry\u2019s output surged 18.1% in the first quarter compared to the previous three months, helping buoy growth more than forecast. The sector accounted for 9% of gross domestic product during the period.<\/p>\n
Last year, the mining industry, which employs more than 451,000 people, accounted for 8.2% of GDP, according to the Minerals Council South Africa, an industry lobby group.<\/p>\n
Revenue for the fiscal year through March exceeded budget estimates for the first time in five years as the industry drove an increase in corporate income tax collections, and led to the shortfall on the main budget coming in below forecast.<\/p>\n
That\u2019s allowed the Treasury to reduce the amount of debt on sale at its weekly auctions for a second time since March and bodes well for its plans to achieve a primary surplus in fiscal 2024-25 and stabilize debt at 88.9% of GDP the following year.<\/p>\n
Sales of PGMs, which are in demand as stricter emission rules boost their use in vehicle autocatalysts, raked in R190 billion ($13.3 billion) amid a rally in palladium and rhodium prices.<\/p>\n South Africa\u2019s terms of trade – a measure of export prices relative to import costs – increased 12% over the past year and more than 20% since the end of 2018, as the global economic recovery from the pandemic pushed up demand for commodities, according to HSBC Bank Plc economist David Faulkner.<\/p>\n The trade windfall is \u201cone of the strongest gains on record, with past experience highlighting how South Africa\u2019s macro fortunes can tilt on favorable commodity prices and a benign external backdrop,\u201d Faulkner said in a note. \u201cThe result has been a period of respite, relief and rally.\u201d<\/p>\n<\/a>
\nThe world\u2019s top platinum suppliers\u2019 exports of platinum-group metals surged 40% in 2020, even as Covid-19 disrupted operations and curbed output, the national statistics agency said in April.<\/p>\n