There is so much distress and tension in the economy right now, owing to the uncomfortable details released to the entire public. Gross domestic product contracted 0.7% for the first quarter of 2017, indicating that the country has entered into a technical recession, according to deputy director general of Economic Statistics at Statistics South Africa (Stats SA) Joe de Beer.
The latest GDP data was released by Stats SA on Tuesday.
The contraction follows the GDP decline of 0.3% in the fourth quarter In 2016, the economy grew only 0.3% for the year.
Compared to the previous year, GDP growth came to 1%. “Over the last four years there were instances of negative economic growth prior to the last two quarters,” said De Beer.
The main contributors to the contraction were the trade and manufacturing industries. Trade declined 5.9% and manufacturing contracted 3.7%.