Technical Recession 2020
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South Africa has officially entered recessionary territory as gross domestic product (GDP) numbers for quarter four of 2019 show that the economy shrank 1.4%. The fall means the country now finds itself in a technical recession which can be described as two consecutive quarters of negative growth after the economy declined by 0.8% in quarter three.
In total the economy in 2019 grew 0.2%. The growth is less than the already lacklustre projections by the IMF, World Bank and Moody’s rating agency which said the economy would grow by 0.7%, the Reserve Bank’s 0.6% and National Treasury’s paltry 0.3% estimate.
The previous recession the country had was in the first half of 2018 largely attributed to the power cuts experienced due to Eskom.
In total the economy in 2019 grew 0.2%. The growth is less than the already lacklustre projections by the IMF, World Bank and Moody’s rating agency which said the economy would grow by 0.7%, the Reserve Bank’s 0.6% and National Treasury’s paltry 0.3% estimate.
The previous recession the country had was in the first half of 2018 largely attributed to the power cuts experienced due to Eskom.
