South African Statistical officials have released latest economic figures that showed that the country is back to recession.
The South African economy shrank by 1.4% in the fourth quarter of 2019, according to new Gross Domestic Product (GDP) numbers.
Figures released by Statistics South Africa on Tuesday showed that there was contraction of 0.8% in the third quarter.
That contraction means that the South African economy was in recession for the last half of 2019.
In the second quarter of 2018 South Africa’s GDP fell for two consecutive quarters which resulted in the country entering into recession.
According to official figures the South African economy grew by only 0.2% for the whole of 2019, a drop from the 2018 figure of 0.8%.
The South African economy continues to struggle with a power crisis which has resulted in load shedding, significantly hitting manufacturing and mining sectors.
Latest figures showed that the manufacturing industry shrank 1.8% in the fourth quarter, while the transport, storage and communication industry saw a decline of 7.2%.
This is South Africa’s third recession since 1994 and the second within two years.
The last time South African entered recession in 2018, the President of South Africa, Cyril Ramaphosa promised recovery which would be sustained.
The latest development could put pressure on him as his government struggles to improve upon the country’s economic situation.
Source: Africafeeds.com
