South African Economy Plunges into Recession.
The economy of African Giants, South Africa fell into a recession for the first time since 2009 after it contracted for a second straight quarter in the first three months of the year.
Gross domestic product shrank an annualized 0.7% in the first quarter from a contraction of 0.3% in the previous three months, Statistics South Africa said in a report released on Tuesday in the capital, Pretoria.
According to Stats SA 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.
The manufacturing industry contracted by 3.7% and contributed -0.5 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.
In contrast the mining and quarrying industry increased by 12.8%, and contributed 0.9 of a percentage point to GDP growth.