The South African economy has been struggling for quite some time now. However, the government did not anticipate another recession. The last recession in the country was nine years ago in 2009. However, the poor performance of the transport, retail and agricultural sectors has led to an economic contraction of 0.7% quarter-on-quarter. Experts had originally anticipated an economic growth of 0.6% during this financial quarter.
The value of the rand has been decreasing drastically and government bonds have fallen, as well. The recession is bad news for the entire country, but especially for the current 27% unemployment rate.