South Africa Slips into Economic Recession
South Africa has entered a technical recession as it contracted 0.77 per cent in the second quarter of the 2018 fiscal year.
According to data released on Tuesday by the South African authorities, the second largest economy in Africa failed to record a growth.
This is the country’s first recession since 2009.
Also, the country’s Gross Domestic Product declined at 2.6 per cent in the first quarter below Bloomberg’s median estimate for 0.6 per cent.
South African economy had recorded growth of 0.4 per cent on year-on-year basis.
The country’s currency – rand – immediately felt the impact, falling 2.3 per cent to 15.2094 on the US Dollars near lunchtime in Johannesburg on the latest GDP report.
Going by the latest statistics, President Cyril Ramaphosa’s six months in office is similar to his immediate predecessor, Jacob Zuma, which also suffered a similar feat in 2009.