Economic growth in South Africa jumped by 4.7% in the third quarter of this year, according to figures released by Statistics SA on Tuesday. While the upside of this forecast-busting figure is that the economy appears to be robust enough to withstand the interest rate hikes of the last year, it does suggest that the Reserve Bank might seriously consider another interest rate increase next week.

Before the release of the GDP growth figure on Tuesday commentators had been worried that the succession of rate hikes was beginning to have a negative effect on the country’s economic growth. The Reserve Bank hoped that the higher interest rates would curb demand and take the country back into the target inflation rate of 3-6%. Whether this will happen remains to be seen as inflation has consistently come in over the top end of the range according to Stats SA released on Wednesday.

The GDP growth figures suggest that by this measurement the economy is currently robust and stable, though with this week the news too that the Reserve Bank's lead indicator down further interest rate increases would need to be well argued indeed. On the other hand, this week's inflation rate might be seen by the Rerserve Bank as requiring further braking and a hike in the rates.

* According to Stats SA, the finance sector, the largest contributor to GDP, has remained strong, growing by 12.1% relative to the previous quarter. This sector – especially higher corporate borrowing – says Stats SA’s manager for GDP Kedibone Mokone has buoyed the GDP in the face of a slowdown in other parts of the economy. While construction also grew, by 14.7%, manufacturing was hit by a on-off strengthening currency and strikes and contracted by 2.5%.