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South African economy contracts for the 1st time since 2009

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Staff writer ▼ | June 9, 2016
South African economy
Africa   Finance, real estate and business services expanded 2.3 percent

The South African GDP shrank 0.20 percent year-on-year in the first quarter of 2016, following downwardly revised 0.5 percent growth in the previous period.

It is the first contraction since the fourth quarter of 2009, due to a slump in mining and quarrying and manufacturing sectors.

Compared to the first quarter of 2015, mining and quarrying sector shrank 8.5 percent (-0.5 percent in Q4), manufacturing dropped 0.9 percent (-1.2 percent in Q4), agriculture output fell for the fourth straight quarter by 2.9 percent (-5 percent in Q4), transport decreased 0.6 percent (+0.5 percent in Q4) and electricity, gas and water declined 4.5 percent (-2.9 percent).

Meantime, finance, real estate and business services expanded 2.3 percent (+2.4 percent in Q4) and construction grew at a faster 2.6 percent (+1.6 percent in Q4). Also, activities in wholesale, retail, motor trade, catering and accommodation increased 1.2 percent, following a 1.7 percent growth in Q4.

On a quarterly basis, the economy contracted 1.2 percent, following a 0.4 percent growth in the fourth quarter.


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