South Africa Economy Goes Into Recession

by AIT / 7 months ago / International News

The South Africa economy is in recession for the first time since 2009 following two consecutive quarters of negative GDP growth.

South Africa

So it seems that the positive wave brought by President Cyril Ramaphosa’s ascension to power in February - appears to be officially over.

The news has come as a surprise to many analysts as they expected the economy to narrowly avoid a second quarter of decline.

The second largest economy in Africa is reeling: rising fuel prices, increased cost of living and an unemployment rate close to 30% is a stark indicator of how much Work President Ramaphosa will have to do to rescue the country from a cliff edge.

Statistics South Africa said the economy contracted at an annualised rate of 0.7% in the second quarter, and this follows a 2.6% negative growth in the previous three months.

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