South Africa is in a recession

Thuletho Zwane

South Africa is in a technical recession – it has been a long time coming.

Last Tuesday South Africa slipped into a technical recession as figures for the second quarter of 2018 showed there was a decrease in Gross Domestic Product (GDP) for April, May and June.

Statistics South Africa (Stats SA) reported that real GDP decreased by 0.7% in the second quarter of 2018, following a decrease of 2.6% in the first quarter of 2018. The report read that the largest negative contributors to growth in GDP in the second quarter were agriculture, transport and trade.

The report also said other industries that felt the pinch in Q2 include the transport, storage and communication industry. They saw a 4.9% decrease whereas trade, catering and accommodation also clocked a 1.9% contraction.

There were a number of reactions.

The country’s Minister of Finance, Nhlanhla Nene, said the government didn’t