What a Technical Recession Means for SA and Consumers - Ian Cruickshanks

Publisher:
SABC
Publication Date:
6 June 2017
Tags:
South Africa, Currencies, Economy, Business and Finance

The South African economy has moved into a recession. This after the country's Gross Domestic Product decreased by 0.7% during the first quarter of 2017. This follows 0.3% contraction in the fourth quarter of 2016. An economy is technically in a recession following two-quarters of negative growth. Stats SA figures show the largest negative contributor to growth in GDP in the first quarter was the trade, catering and accommodation industry, which decreased by almost six percent and contributed negative 0.8 of a percentage point to GDP growth. The manufacturing industry contracted by 3-point- 7 percent and contributed negative 0-point-5 of a percentage point. The Rand has extended losses by nearly one percent on the news.

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