Wednesday, 7 June 2017
South Africa's economy falls into recession for the second time in 8 years
South Africa’s economy fell into recession for the first time since 2009 after it contracted for a second straight quarter in the first three months of the year. According to new reports, while rains are helping the country recover from a 2015 drought that was the worst since records started more than a century earlier, political uncertainty has prevented the implementation of some government reforms aimed at boosting growth. President Jacob Zuma changed his cabinet and fired Pravin Gordhan as finance minister in March, a move that saw the nation lose its investment-grade status with two ratings companies for the first time in 17 years.
“There is a risk that these contractions are not over and we could see another negative coming out in the second quarter of this year,” Annabel Bishop, a South African chief economist says