Republic of South Africa went in recession for the second time in the past two years

September 5, 2018 1:42 pmComments Off on Republic of South Africa went in recession for the second time in the past two yearsViews: 24

Republic of South AfricaThe Republic of South Africa announced a decline in its gross domestic product (GDP) by 0.7% for the second consecutive quarter, putting it technically in recession for the second time in two years, indicating a chronic weakness. According to the South African Statistical Office, the GDP of the continent’s most developed industrial economy shrank by 0.7% in the second quarter of 2018 after falling by 2.6% (adjusted data) in the first quarter.

The decrease of 0.7% is due to the weakening of activity in agriculture, transport, trade and production and public sectors.

At the same time, mines, finance, real estate and services have been the main drivers of economic growth.

For years, South Africa has struggled to grow and record unemployment of 27.7%. Its growth for 2017 is 1.3% (+0.6% in 2016) and analysts expect GDP to grow by 1.8% in 2018.

The country experienced a six-month period of technical recession in late 2016 and early 2017.

The President Cyril Ramaphosa, who headed the country in February to replace Jacob Zuma, has pledged to boost the economy, in particular by encouraging foreign investment, and also by eradicating corruption in the country.

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