Agriculture remains resilient as South Africa’s economy slips into technical recession
12 June 2017
South Africa’s real gross domestic product (GDP) shrunk by 0,7% in the first quarter of 2017, following a decrease of 0,3% in the fourth quarter of 2016, Statistics South Africa (Stats SA) reported recently.
In economics, if an economy shrinks for two straight quarters (a total of six months), that indicates that economy has fallen into technical recession. The technical indicator of a recession therefore is two consecutive quarters of negative economic growth as measured by a country's GDP. This is what is reflected in Chart 1 below as far the South African economy is concerned.
Chart 1: Growth in GDP (%)1