SA slips further into recession as economy contracts in first quarter

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The Covid-19 coronavirus pandemic, which has severely curtailed economic activity in South Africa, means the outlook remains gloomy and the National Treasury sees GDP contracting by 7.2% this year. Picture: iStock/ Coffeekai
The Covid-19 coronavirus pandemic, which has severely curtailed economic activity in South Africa, means the outlook remains gloomy and the National Treasury sees GDP contracting by 7.2% this year. Picture: iStock/ Coffeekai

BUSINESS

South Africa’s economy contracted by 2% during the first quarter of this year following a contraction in the final quarter of last year when the economy entered recession, data from Statistics SA showed on Tuesday.

The third consecutive quarter of decline was led by the mining and manufacturing sectors with both slowing by 21.5% and 8.5%, respectively. This third quarter of contraction follows last year’s third quarter slump of 0.8% and last year’s fourth quarter slump of 1.4%.

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