South African Economy Suffers Unexpected Decline – Contracts 0.6% In Q3 2019

Data released by Statistics South Africa (SSA) on Tuesday shows that the country’s gross domestic product (GDP) declined by 0.6 percent in Q3 2019.

It’s the second time this year that the country’s quarterly GDP data is reflecting a contraction and this time around, the decline is even worse than expected and perhaps even unexpected as experts had predicted a small expansion.

South Africa’s economy contracted for a second-quarter this year in the three months through September as farming, mining and factory output suffered.

South Africa’s GDP sunk by 0.6 percent, compared with a revised 3.2 percent expansion in the second quarter, Statistics South Africa said Tuesday in the capital, Pretoria.

With the latest economic data reflecting a decline that appears to have taken everyone by surprise, full-year economic growth — which has remained south of 2 percent since 2013 — may even be lower than the 0.5 percent talked up by the Treasury.

That will only deepen concerns for an economy that is being hampered by ailing state firms and huge debts that have taken a toll on consumer/business confidence.

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