South Africa slips into recession

South Africa slips into recession

South Africa enters a recession as the country's Growth Domestic Product (GDP) contracts for a consecutive quarter.

South African money

The GDP has contracted 0.7% during the first quarter of 2017.

Statistics South Africa released the latest numbers today. 

The contraction in the first quarter of the year follows a 0.3% contraction at the end of last year, officially placing the country in a recession.

Stats SA says the largest negative contributor to the GDP statistics was trade, catering and the accommodation industry, which decreased by 5.9%.

Efficient Group economist Francois Stofberg says: "Every one of the other major sectors in the country have also shrunk. It's not good news, especially for job creation."

Unemployment hit 27.7% in the first quarter, the highest level since 2003. 

It's the second recession in eight years. 

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