South Africa’s economy has stopped growing in this year’s second quarter. Instead of growing by 0.6% - as expected by South Africa’s economists – the economy contracted by 0.7%, due to weak agricultural output and consumer spending. This means that the economy is now in a recession.
StatsSA has released statistics that show that agriculture declined by 29.2% annually, mining output increased 4.9% from the previous quarter, manufacturing shrank 0.3% and trade contracted 1.9%.
In the first three months, SA’s economy shrunk by 2.2%, the biggest quarterly contraction since the economic downturn of 2008. AfricanBusinessMagazine reports that “the second quarter results confirmed the country’s economy was in a downward trajectory.”
According to the report, the lack of certainty surrounding the country’s land reform policy has affected investor confidence.
Further reading on africanbusinessmagazine.com