South Africa’s economy has officially entered a new recession for the second time in two years, the national statistics office (Stats SA) announced.

Data show that in the fourth quarter in 2019, the economy shrank by 1.4%, after a 0.8% decline the previous quarter. This scenario is the consequence of a slowdown in 7 out of the 10 key sectors over the year. In the fourth quarter, agriculture dropped by 7.6%, transport and communication by 7.2%, and construction by 5.9%. For the whole year, South Africa recorded a growth rate of only 0.2%, the weakest rate since the global crisis in 2008.

Hit by drought, high unemployment rate (about 30%), recurrent power shortages and a growing public debt burden, the South African economy first entered a recession when GDP dropped by 2.6% and 0.4% in Q1 and Q2 2018, respectively.

The new GDP decline, the third since 1994, comes after a sluggish recovery marked by austerity measures that resulted in very weak growth compared to the 5% recorded between 2004 and 2007.

While global economic tensions, climatic constraints, and the coronavirus epidemic pose enormous risks to the world economy, this new recession points to a difficult year start for the rainbow nation.

Moutiou Adjibi Nourou