Shock 3.2% contraction in GDP in first quarter
The numbers are likely to reinforce expectations that the Reserve Bank will move to cut interest rates, possibly at its next meeting in July
SA’s economy contracted 3.2% in the first quarter of 2019, the worst drop since the same period in 2009 in the wake of the global financial crisis. This follows growth of 1.4% in the fourth quarter of 2018.In the first quarter of 2009, the economy contracted 6.1%.The manufacturing sector contributed most to the quarterly contraction, falling 8.8%, statistician-general Risenga Maluleke said on Tuesday.However, activity fell in almost every sector of the economy.The rand, which was at R14.46/$ immediately before the announcement, slid to R14.64/$ shortly after 12pm, a 1.4% fall on the day.
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