South Africa’s GDP fell by 3.2% in the first three months of the year. The biggest drop in a decade.
The estimated prediction for Q1 was a fall of 1.9% due to the lack of investment, weak consumer demand and the impact of load shedding.
The rand fell by more than 1% against the dollar to trade at R14.64 to the dollar.
Stats SA said that when compared to the fourth quarter of 2018 almost all industries contracted with manufacturing falling by 8.8%, mining by 10.8%, agriculture by 13.2%,, electricity is down by 6.9%, Transport down by 4.4%, trade by 3.6% and construction fell by 2.2%.
Government however had grown by 1.2%, finance by 1.1% and personal services by 1.1%.
If the economy were to contract any further in the next quarter of 2019, South Africa will enter a recession.