The South African economy on Tuesday contracted into a technical recession, according to Bloomberg.
Latest economic data by the country’s statistics agency showed second quarter gross domestic product (GDP) declined by about -0.7 per cent, driven by the poor performance in key sectors, including agriculture, transport and retail businesses.
It is the first time since 2009 that the South African economy, the second largest in Africa after Nigeria, will be going into recession.
“We are in a recession. We reported a contraction in the first quarter … and now in the second quarter with a fall of 0.7 percent,” Reuters News quoted South Africa’s Statistician-General, Risenga Maluleke as saying after the publication of the latest economic indices.
The country’s statistics agency said productivity from the agricultural sector plunged 29.2 per cent in the second quarter, while the transport, communication and storage sector also dropped 4.9 per cent.
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