• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      CBN says cryptocurrency ban in interest of Nigerians

      10 hrs

      Companies-in-Action

      Zenith Bank in strong operational performance as profit rises 10.4% to N230.56bn in FY20

      10 hrs

      Companies

      United Capital posts strong numbers as earnings rise 50% to N12.87bn in 2020

      February 23, 2021

      Finance

      CIBN revives mentorship initiative for bank workers

      February 20, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Insurance Business

      Enterprise risk management surges amid pandemic, RIMS reports

      9 hrs

      WORLD BUSINESS & ECONOMY

      Hyundai to recall 82,000 electric cars over battery malfunction

      10 hrs

      Frontpage

      Global health insurance premiums fall amid pandemic, says new report

      February 24, 2021

      Frontpage

      Insurance M&A record highest growth in Africa, Middle East in 2020

      February 23, 2021

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Oil and Gas

      OPL 310: LEKOIL engages Optimum Petroleum over CRSA agreement

      3 hrs

      Frontpage

      Nigeria still losing 200,000bpd crude daily as NNPC enlists army’s intervention

      10 hrs

      Frontpage

      Nigeria to sell 170MW electricity capacity to Togo from Calabar plant

      February 24, 2021

      Oil and Gas

      NCDMB extends ‘transitional’ equity to Waltersmith’s expanded refinery

      February 19, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      Coronation MB analysts project sharp rates rise after Nigeria recession exit

      9 hrs

      Analyst Insight

      How NITDA can further foster data protection compliance in Nigeria

      February 22, 2021

      Analyst Insight

      Do we need more start-ups in insurance?

      February 16, 2021

      Analyst Insight

      Naira, PMI’s and Inflation in focus

      February 16, 2021

Frontpage

South Africa goes into technical recession as GDP falls 0.7% in second consecutive quarter

Adesola Afolabi

Adesola Afolabi is  Businessamlive Reporter.
You can contact her on adesola.afolabi@businessamlive.com with stories and commentary.

September 4, 2018682 views0 comments

Adesola Afolabi & Bukola Odufade

 

Gross Domestic Product (GDP) data from South Africa’s statistical agency published Tuesday for the second quarter of 2018 has shown that the country has entered into a technical recession.

A country is said to be in a technical recession when in two consecutive quarters it records economic decline.

Read Also:

  • Nigeria, Egypt, Kenya, South Africa lead Africa’s home-tech market, with…
  • Coronation MB analysts project sharp rates rise after Nigeria recession exit
  • Africa and the decade of COVID-19 (4)
  • Interswitch pushes novel Quickteller Business for SME growth across Africa
  • Insurance M&A record highest growth in Africa, Middle East in 2020

The reported data indicate a decline of 0.7 percent in the second quarter of the year, following a first-quarter decline of 2.2 percent.
Ahead of the GDP announcement, economists had anticipated data showing that South Africa had narrowly missed going into technical recession, but indicated that growth, if any, would have been too low to spell any good news for the economy.

Cyril Ramaphosa, South African President resumed office in December and this had initially boosted sentiment and the rand following Jacob Zuma’s corruption-plagued tenure of almost nine years, but that optimism has faded as structural reforms weren’t implemented fast enough.
“It’s showing that this economy remains in the doldrums, that we are in desperate need for policy certainty and structural reform to get us onto a growth path,” Elize Kruger, an economist at Paarl, South Africa-based NKC African Economics, said. “This type of environment is difficult for job creation. We’ll get stuck in our low-growth term if we can’t get out of this.”

According to Stats SA, the largest negative contributors to growth in GDP in the second quarter were agriculture, transport and trade.

The agriculture, forestry and fishing industry decreased by 29.2 percent and contributed -0.8 of a percentage point to GDP growth. The decrease was mainly because of a drop in the production of field crops and horticultural products, Stats SA said.

The transport, storage and communication industry decreased by 4.9 percent and contributed -0.4 of a percentage point. This was as a result of decreases in land transport, air transport and transport support services.

The trade, catering and accommodation industry decreased by 1.9 percent and contributed -0.3 of a percentage point.

Positive contributions came from the mining industry and finance, real estate and business services. Increased production was reported for mining of ‘other’ metal ores including platinum group metals, copper and nickel.

The manufacturing industry contracted by 0.3 percent in the second quarter. The majority of the ten manufacturing divisions reported negative growth rates in the second quarter. The largest contributors to the decrease were the motor vehicles, parts and accessories and the furniture and ‘other’ manufacturing divisions.

The electricity, gas and water industry increased by 2.1 percent, largely due to an increase in electricity consumed in the second quarter. The construction industry increased by 2.3 percent. Increases were reported for non-residential buildings and construction works activities.

The rand fell further against the dollar after the report was published, sinking to R15.22, having passed the R15 barrier earlier in the day.

Share on Facebook Tweet Email
TagsSouth Africa
PreviousTurkey’s central bank to take action after inflation hits 18%
NextAfrica needs aggressive investment in ICT to stimulate economic growth, says DBI

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Nigeria records 6% drop in vessel traffic
  • Share illiquidity forcing Ellah Lakes’ majority owners to sell down 25%
  • Nigerian stock-fish dealers want access to foreign exchange
  • OPL 310: LEKOIL engages Optimum Petroleum over CRSA agreement
  • Coronation MB analysts project sharp rates rise after Nigeria recession exit

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

FG has approved N47bn for Nigeria Air —Sirika

Frontpage May 28, 2019

1
2

NNPC $3.15bn financing agreement for OML13 seen as game changer; FG to earn $10.2bn in 15yrs

Frontpage July 23, 2019

3

Anambra State denies receiving N25bn DMO bond

Anambra November 20, 2020

4

Govs challenge FG over utilisation of recovered loots

Frontpage May 15, 2020

5

Nigeria’s crude exports expected to rise to 1.7m in May

Frontpage May 9, 2017

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.