South Africa slipped into technical recession for the first time since 2009 after the economy contracted in the first quarter, led by weak manufacturing and trade sectors, Statistics South Africa said on Tuesday.
Africa’s most developed economy contracted by 0.7 percent in the first quarter after shrinking by 0.3 percent in the fourth quarter of last year, the statistics agency said.
Economists had expected a quarter-on-quarter GDP expansion of 0.9 percent. Gross domestic product rose 1.0 percent on an unadjusted year-on-year basis in the first quarter, compared with 0.7 percent contraction in the previous three months, the agency said.
It was reported in the first quarter of 2017, both the secondary and tertiary sectors recorded negative growth rates. The trade and manufacturing industries were the major heavyweights that stifled production, with trade falling by 5.9% and manufacturing by 3.7%.
On the positive side, agriculture and mining industry contributed positively to growth, but not enough to avoid the recession.
Trade experienced production falls across the board, particularly in catering and accommodation and wholesale trade. Manufacturing found itself hamstrung by lower production levels primarily in food and beverages and petroleum and chemical production.
