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JUST IN: South Africa’s economy slips into recession

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.

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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.

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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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