Stats SA announced that South Africa’s gross domestic product
had decreased by 0.7% in the second quarter of 2018. This is the
second decrease in 2018.
The agriculture industry is the most significant negative contributor – this
sector fell by 29.2%. The transport industry follows on its heels
at 4.9% negative and then trade at 1.9%.
Economists have a generally accepted rule: if two consecutive quarters
have a negative GDP; the economy has officially entered a technical recession.
The announcement is also hammering the rand, currently trading at
a whopping R15.22 to the US Dollar.