The President of South Africa, Cyril Ramaphosa says his country will soon recover from recession. On Tuesday South Africa entered into recession for the first time since 2009, according to second quarter data.
That means the country has for two successive quarters recorded economic decline with a fall in Gross Domestic Product (GDP).
By entering into recession, it means South Africa’s trade and industrial activities reduced in two successive quarters.
But on Thursday President Ramaphosa was reported by Eye Witness News as saying that “All these things that are happening now are transitional issues that are going to pass.”
“I will be meeting with the business community soon, so that we rally everyone together and pull our country out of the situation that we are in.”
President Ramaphosa was attending the China-Africa summit in Beijing when the data was released.
Statistics South Africa released economic figure on Tuesday detailing how the economy contracted by 0.7 percent in the second quarter.
There were declines in the agricultural, transport and retail sectors, according to the latest figures.
The country’s currency the rand also recorded significant losses against the dollar to more than 2 percent. Government bonds fell as well.
South Africa’s Statistician-General Risenga Maluleke says “We are in a recession. We reported a contraction in the first quarter … and now in the second quarter with a fall of 0.7 percent.”