South Africa slides into recession amid failing government reforms

Massive declines in the agricultural, transport and retail sectors have dragged the South African economy into recession after nearly a decade of growth. It is a huge blow to President Ramaphosa's controversial reforms.

GDP in the second quarter contracted by 0.7 percent compared to the first three months of the current year. South African national currency, the rand, extended declines against the US dollar to more than two percent as government bonds fell after the released data.

“We are in a recession,” Statistician-General Risenga Maluleke said, commenting on the reports that reflect two consecutive quarters of contraction.

According to Statistics South Africa, agricultural production declined by 29.2 percent, while the transport, communication and storage sector dropped 4.9 percent. At the same time, mining output grew by 4.9 percent and finance by 1.9 percent.

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