South Africa entered its second recession in two years in the final quarter of last year, as agriculture, transport and construction contracted, data showed on Tuesday.
Statistics South Africa (Stats SA) said the economy shrank 1.4 percent in the fourth quarter, following a revised 0.8 percent contraction in the third quarter.
Economists polled by Reuters had predicted a contraction of 0.1 percent in quarter-on-quarter and seasonally adjusted terms.
“The economy is recession again. That is two consecutive quarters of contraction, after being in recession in the first two quarters of 2018,” Joe de Beer, Stats SA’s deputy director-general for economic statistics, told reporters.
On a quarter-on-quarter basis, agriculture declined 7.6 percent, transport 7.2 percent, construction 5.9 percent, electricity 4 percent and retail 3.8 percent, the data showed.
Gross domestic product overall shrank 0.5 percent year-on-year in the fourth quarter after expanding 0.1 percent the quarter before. The economy expanded 0.2 percent in the 2019 calendar year compared with 0.8 percent in 2018.
South Africa has struggled to emerge from an economic slump in the two years since Cyril Ramaphosa became president, promising sweeping reforms.
The Treasury has cut 2020 economic growth forecast to 0.9 percent.
South Africa previously went into recession in 2008/2009 and then again in 2018.
The International Monetary Fund last year urged more “decisive” reforms to boost private investment in South Africa, forecasting economic growth to remain sluggish for a sixth consecutive year in 2020.
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