WATCH | SA's second recession in two years: here's what you need to know

04 March 2020 - 11:19
By Reuters

Africa's most advanced economy has entered another recession, data showed on Tuesday March 3, with two consecutive quarters of GDP contraction led by declines in transport, construction, electricity and retail. 

SA has entered its second recession in two years as the economy continues to flounder.

Statistics South Africa said the economy shrank by 1.4% in the fourth quarter of 2019 which followed a 0.8% contraction in the third quarter.

Recession is defined as two consecutive quarters of contraction - and South Africa was also hit by recession in the first half of 2018.

SA has struggled to emerge from an economic slump in the two years since Cyril Ramaphosa came to power promising sweeping reforms.

Amid power cuts and falling business and consumer confidence, low growth has piled pressure on state coffers and raised the risk of deeper credit downgrades.

Unemployment is at its highest in more than a decade, and living costs are rising.

The Treasury has cut 2020 economic growth forecast to 0.9%.