GDP Shrinks Almost As Much As In 2009 Economic Crisis
New stats show that the SA GDP has contracted a lot more than expected or hoped for (the economy is doing worse). The figures are reminiscent of the huge reduction back in 2009 when the entire world plunged into an economic recession.
The reduction has been across almost every industry but was particularly noticeable in the Manufacturing Sector and Mining Sector (which dropped 10.8%). Agriculture, forestry, and fishing were some of the biggest losers dropping by as much as 13.2%
‘The figures are reminiscent of the huge reduction back in 2009 when the entire world plunged into an economic recession.’
Rand Takes a Knock
The stats hit the Rand hard seeing it drop once again below the R14.50 barrier to R14.64/ US$ (almost 1.5%).
The new stats mean that year on year the economy has grown 0% or not at all. At the same time, there are more citizens and inflation has been hitting hard. It was hoped there would at least be a 0.7% growth but this has not materialised.