Statistics South Africa has announced on Tuesday that South African economy has entered a recession for the first time in eight years after showing negative GDP growth for a second consecutive quarter. The country’s gross domestic product (GDP) growth rate is at 1% on a year-on-year basis resulting in a technical recession.
According to the statistics agency, the economy contracted in the first quarter, led by weak manufacturing and trade sectors. Africa’s most developed economy contracted by 0.7 percent in the first quarter after shrinking by 0.3 percent in the fourth quarter of last year.
The largest negative contributor to growth in GDP in the first quarter was the trade, catering and accommodation industry, which decreased by 5.9% and contributed -0.8 of a percentage point to GDP growth.
Seven out of ten divisions reported negative growth rates in the first quarter. The largest contributor to the decrease was the petroleum, chemical products, rubber and plastic products division.
This is how South Africans to the news:
— Leandri Janse van Vuuren (@Lean3JvV) June 6, 2017
— ANDЯE TONKIN (@Magic6s) June 6, 2017
We were promised 6% growth, we got #recession. We were promised 6m jobs, we got even higher unemployment than before. No more promises!
— Sizwe Mpofu-Walsh (@SizweMpofuWalsh) June 6, 2017
— Mweli Masilela (@mwelimasilela) June 6, 2017
— Digital Marketing Liaison | KAMOGELO (@KayTsime) June 6, 2017
— Kevin Crowley (@CrowleyKev) June 6, 2017
#Recession Economist Lumkile Mondi says SA will continue to see jobs being lost in the trade sector economy.
— POWER987News (@POWER987News) June 6, 2017
— Vinolia Mashego (@HrhVinolia) June 6, 2017
But I thought 2017 was suppose to be better than 2016 ??? #recession
— Moremadi? (@LMabogoane) June 6, 2017
Alothough the #recession will burden mostly the working class
It is a necessary evil that will help to highlight the plight of our people
— Robert Mangaliso Sobukwe (@phethani4) June 6, 2017