BREAKING: South Africa, Africa’s Second-Largest Economy Slips Into Recession

President Cyril Ramaphosa

According to a data released on Tuesday by the South Africa's Statistician-General, Risenga Maluleke, indicates that the country entered recession in the second quarter for the first time since 2009.

The statistics revealed that the economy contracted by 0.7 percent in the second quarter, led by declines in the agricultural, transport and retail sectors.

This came short of the predictions of analysts that the economy of the country would grow 0.6 percent in the latest quarter, the rand instead tanked against the dollar to more than 2 percent while government bonds fell also.

“We are in a recession. We reported a contraction in the first quarter ... and now in the second quarter with a fall of 0.7 percent,” Maluleke said.

Agricultural output fell 29.2 percent in the second quarter, while the transport, communication and storage sector fell 4.9 percent.

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On the positive side, however, mining output grew by 4.9 percent and finance by 1.9 percent.

The Stats SA also said the economic contraction in the first quarter was steeper than initially recorded, at 2.6 percent.

Analysts said the dismal data would likely make it harder for the South African Reserve Bank to raise interest rates at its upcoming periodic meetings.

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