South Africa enters recession

South Africa’s economy was in a recession in the last half of 2019 after it contracted for two consecutive quarters.

JOHANNESBURG - South Africa has entered into a recession.

South Africa’s economy was in a recession in the last half of 2019 after it contracted for two consecutive quarters.

It contracted by 1.4 percent quarter-on-quarter in the last three months of the year after dropping by a revised 0.8 percent in the third.

READ: SA economy contracts by 0.6 percent in third quarter

The dismal performance in the last three months of the year was a result of load-shedding which dragged down the retail and transport sectors.

They were the biggest drawback to growth in the 4th quarter contracting by 3.8 and 7.2 percent respectively.

Agriculture also saw negative growth of 7.6 percent as a result of foot and mouth disease and drought.

 

Source
eNCA