Q4 growth quickens

Economic growth picked up in the fourth quarter but not enough to lift last year's output, which languished below 2% in the aftermath of the 2009 recession.

The weak growth puts pressure on Finance Minister Pravin Gordhan, who has to keep spending in check and rein in an unwieldy deficit, leaving little room for stimulus in a budget due today.

Gross domestic product increased by 3.8% in the fourth quarter after expanding by 0.7% in the third, Statistics SA said yesterday.

Economists polled by Reuters expected quarterly growth of 3.4%.

Stats SA attributed the rebound mainly to base effects - the automotive sector recovered from strikes earlier in the year while gold output increased.

But it was not enough to boost overall growth last year, which slowed to 1.9% from 2.5% in 2012.

"The consumer remains under some pressure and we would expect an ongoing slowdown in 2014," said Macquarie economist Elna Moolman.