South Africa enters technical recession - Stats SA

Statistics South Africa announced on Tuesday that South Africa has entered a technical recession with the second quarter of negative growth.

South Africa's gross domestic product decreased by 0.7% on a seasonally adjusted and annualised basis for the first quarter of the year. That’s after the economy contracted by 0.3% in the last quarter last year. In the first quarter, South Africa's economy grew by 1% year on year on an adjusted basis.

When you have an economy encased in a toxic political environment environment it is likely going to be the case that investment and spending will stutter. Not only are we in a technical recession, there is also momentum behind the slippage.

Goolam Ballim, Chief Economist, Standard Bank

Ballim tells Stephen Grootes, host of The Midday Report, that the contraction in the first quarter of 2017 was twice the pace of the contraction in the first quarter of 2016. He says looking beyond the numbers, South Africa's economy is weak and the quality of growth pitiful.

Its been almost three years that the economy has been unable to grow quicker than 2% over the last 24 months.

Goolam Ballim, Chief Economist, Standard Bank

Listen to the interview in the clip below:

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Ugandan sector challenges make way for growth

Ugandan sector challenges make way for growth

Making her way through Kampala, Nikiwe Bikitsha stopped by the offices of Stanbic Bank Uganda to chat to Patrick Mweheire.

Is South Africa in a recession? Consider, for example, new car sales...

Is South Africa in a recession? Consider, for example, new car sales...

The Money Show’s Bruce Whitfield interviews ETM Analytics Economist George Glynos.

ANC's subcommittee on economic transformation won’t rule out  a recession

ANC's subcommittee on economic transformation won’t rule out a recession

On Sunday, the committee held a briefing on the party’s economic transformation discussion document.

Zuma responsible for turmoil, recklessness and irrationality  - BLSA

Zuma responsible for turmoil, recklessness and irrationality - BLSA

Reports have emerged that National Treasury director general Lungisa Fuzile has asked to leave his post at the end of this month.

What happens to economies when downgraded (It doesn't look good for SA)

What happens to economies when downgraded (It doesn't look good for SA)

Standard Bank Chief Economist, Goolam Ballim, says it won't be easy for South Africa to survive the consequences of a downgrade.

Popular articles
[LISTEN] Makhosi Khoza spills the beans on why she quit the ANC

[LISTEN] Makhosi Khoza spills the beans on why she quit the ANC

She says President Zuma was uncomfortable with her and her decisions which saw changes to the ANC and Motsoeneng ousted.

[Watch] Payday dance: Never a dull moment in Cape Town

[Watch] Payday dance: Never a dull moment in Cape Town

Even slow-moving traffic cannot dampen the mood in Cape Town because payday came early. Watch Capetonians celebrating payday.

Outa files urgent court interdict to freeze Gupta money

Outa files urgent court interdict to freeze Gupta money

Outa wants to prevent the money leaving SA as it is meant for the rehabilitating areas in which Gupta mines were situated.

KPMG International's meeting with Pravin Gordhan

KPMG International's meeting with Pravin Gordhan

The Money Show’s Bruce Whitfield interviews Pauli van Wyk, a journalist with Scorpio at Daily Maverick.

Ocean View activist speaks: We have had 20 murders in 2017 alone

Ocean View activist speaks: We have had 20 murders in 2017 alone

Sharone Daniels, a community activist in Cape Town's Ocean View says they need police intervention to end gang violence.

[WATCH] Day-Zero for water running out fast approaching?

[WATCH] Day-Zero for water running out fast approaching?

A government employee emailed John Maytham about what he or she believes is the real state of play with the Cape water crisis.