SA’s surprise slide in GDP intensifies pressure for reform with downgrades in sight
Rand slides as report raises concern that the economy may barely grow at all in 2019
SA's shock economic contraction in the third quarter, the second decline of 2019, crystallised the need for urgent economic reforms if the country is to avoid a damaging ratings downgrade after February's budget.
Stats SA said on Tuesday that GDP shrank by 0.6%, compared to an unchanged reading forecast by economists in a Bloomberg survey. The economy grew just 0.1% from the same period in 2018. The report cemented concern that SA will only manage marginal growth,for the full year, making it harder for the government to contain debt and increase revenue.