South Africa’s economy entered into recession for the first time since 2009

Moscow. June 6. INTERFAX.RU – South Africa’s Economy in the first quarter of 2017 decreased by 0.7% yoy after a decline of 0.3% in the fourth quarter of last year, according to released on Tuesday by official data. Thus, the country’s GDP declines for two consecutive quarters, which corresponds to the definition of technical recession. In recent times, the recession in South Africa was recorded in 2009.

The reduction of the South African economy came as a surprise to economists, who had expected growth in the January-March 1%. Only one of 19 in a Bloomberg survey of experts forecast a recession.

The main negative factor for the South African economy has become a political crisis, during which President Jacob Zuma has announced a major reshuffle in the government. He changed Ministers in 10 ministries, including the Ministry of Finance and the Ministry of energy, and then South Africa for the first time in 17 years has lost investment grade rating from two of the three major rating agencies.

At the end of may, the Central Bank of the Republic of South Africa has lowered the forecast of growth of the economy in 2017 from 1.2% to 1%. By the end of 2016, the country’s GDP increased by 0.3% after rising 1.3% in the previous year. While the average annual economic growth rate of South Africa in 1994-2016 years is 2.89 per cent.