Africa Biz Construction and Business News
South Africa Dips into Recession For 1st Time in Almost A Decade
September 5, 2018
For the first time in over 9 years, South Africa’s trade and industrial activities have gone down for two quarters in a row. This makes it officially in recession.
In the latest reports, GDP for the country for Q2 2018 was down -0.7% from Q1 of this year, down -0.4% from the same quarter a year ago, and off -0.6% for the first half of 2018 versus the first half of 2017.
In report from Reuters, senior BNP Paribas economist Jeffrey Schultz said about the poor country performance that, “There is no way to sugar coat the numbers. The growth picture in the first half of 2018 is ugly and it shows in this economy that there is broad based weakness across the primary and tertiary sectors of the economy.”
The results are especially concerning as this follows almost a full decade of stagnation for South Africa. The new President, Cyril Ramaphosa, is already struggling to revive the economy. These results – and the underlying causes behind them – could make that extremely difficult.