South Africa enters technical recession

Johannesburg, South Africa (PANA) – South Africa has officially entered a technical recession. This after Stats SA on Tuesday announced that the country's real gross domestic product had decreased by 0.7% in the second quarter of the year. A GDP contraction of 2.2% in the first quarter resulted in two consecutive quarters of negative growth.

Ahead of the announcement, most economists had predicted that the country would narrowly avert a recession. It marks the first time that South Africa has entered a recession since the 2008/2009 global financial crisis. This is partly because many of the enormous construction projects ahead of the 2010 FIFA World Cup helped boost the economy.

The official opposition Democratic Alliance (DA) said the recession is an explicit vote of no confidence in the government, its economic policy direction, and its ability to create jobs and prosperity for all South Africans. DA leader Mmusi Maimane said he will write to the Speaker of the National Assembly, Baleka Mbete, requesting an urgent debate in Parliament on this matter.

“Our economy is currently on life-support as a direct result of a corrupt and failing government which has no plan for our economy. We will never achieve a united, non-racial and prosperous nation without a growing economy which creates jobs, opportunity and wealth for all,” he said.
-0- PANA CU/MA 4Sept2018

04 september 2018 11:02:27

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