SA slips into technical recession
The contraction of the country’s Gross Domestic Product (GDP) for the second consecutive quarter means the country has slipped into a technical recession.
The GDP decreased by 0.7% in the second quarter.
“We are in recession (as) we reported a contraction of the economy in the first quarter. And even with revisions it has come in a form of negative 2.6% in the first quarter and now in the second with a fall of 0.7%. The fact that the economy fell by 0.7% following such a decrease in the first quarter. We are in a recession,” says statistician-general Risenga Maluleke.
Figures released by Stats SA show the primary sectors have had the biggest negative impact on the economy.
“The agriculture, forestry and fishing industry decreased by 29.2% and contributed -0.8% of a percentage point to the GDP growth.
“This decrease was mainly because of a drop in the production of field crops and horticultural products,” says Maluleke.
In contrast, mining has seen a positive contribution to the country’s GDP.
The sector has increased by 4.9% and contributed 0.4% of a percentage point to GDP growth.
The South African #economy slipped into a #Recession as economic activity declined by 0,7% in Q2:2018 q/q after a 2,6% decline in Q1:2018 #StatsSA #GDP https://t.co/KjOdmHB0yN pic.twitter.com/aBnPccETmP
— Stats SA (@StatsSA) September 4, 2018