The rand lost ground at lunchtime on Tuesday after the local economy contracted more than expected in the first quarter, chipping away at the euphoria brought by President Cyril Ramaphosa’s appointment earlier in the year. The reality check also hit banks, insurance stocks and domestic industrial stocks, which had benefited markedly from an earlier surge in optimism under Ramaphosa, who has committed to turning around the economy. "The figures leave a sour taste in the mouth, indicating that we need to be realistic about our growth potential," ETM Analytics market analyst Halen Bothma said. "SA needs structural reforms that will enable the economy to grow sufficiently to address social and economic challenges." SA’s economy shrank by a shocking 2.2% in the first quarter of 2018 compared with the final quarter of last year — with the surprisingly poor performance due to a plunge in the agricultural sector of 24.7%.
This is the largest quarterly fall since the second quarter of ...
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