South Africa's economy is looking the worst it has in nearly a decade, slumping 3.2% in the first quarter from the end of 2018. But what caused this nosedive? Briefly.co.za explains.
Today South Africans learnt that the economy dived by 3.2% this quarter, disappointing those who predicted a 0.7% growth.
But what caused this slump? According to Eyewitness News, the manufacturing sector suffered significantly, lagging the 1.7% decline economists had forecast and sending the Rand lower.
Statistician-General Risenga Maluleke commented on the situation, saying that:
“This was the largest economic contraction in almost a decade... It was largely driven by manufacturing, then mining."
The construction industry also took a knock, recording a 7.4% drop from the beginning of the year.
Agriculture, however, was a bloodbath, according to The South African, which reported the industry suffering a 13% loss of output.
Briefly.co.za reported earlier today that the industry was calling on President Cyril Ramaphosa to address the safety of the agricultural community following the death of a well-known wine merchant.
While the overall outlook was grim for Mzansi, a few sectors managed to keep in the green with personal services and financial portfolios registering a 1.1% growth.
This has impacted the way households spend their funds, seeing a drop in the number of people buying clothing (down 12.7%) and cutting down on transport (3.1%).
The president sure has his hands full with convincing South Africans that his promise of economic revival will be kept.
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