South Africa has officially entered a technical recession as the gross domestic product fell by 0.7% in the second quarter of 2018.
This follows a decrease of 2.6% in the first quarter of the year.
The largest negative contributors to growth in GDP were agriculture, transport and trade.
Senior Economist at Argon Asset Management, Thabi Leoka, says this was unexpected.
I had expected a small increase of around a positive 0.3%. I thought that we would scrape it in but I did not expect a contraction in the second quarter.— Thabi Leoka, Senior Economist at Argon Asset Management
I am particularly concerned about the sectors that contracted. I am concerned about what will take us to strong positive growth especially in the second half of the year which is what we need to escape an all-round recession in 2018.— Thabi Leoka, Senior Economist at Argon Asset Management
I think we have not come up with policies that will trigger growth and stabilise the economy. The negative first half of the year tells you that we are not doing what we should do.— Thabi Leoka, Senior Economist at Argon Asset Management
It is a crisis. All of us need to make sure that we contribute to changing the current status of our economy.— Thabi Leoka, Senior Economist at Argon Asset Management
Click on the link below to listen to the full conversation...
This article first appeared on 702 : SA GDP in 'crisis' - 'Strong positive growth needed to avoid full recession'