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SA in recession as GDP tanks

May 26 2009 11:58

Johannesburg - South Africa's real gross domestic product (GDP) dropped on a quarter-on-quarter basis by -6.4% in the first quarter of 2009, from -1.8% in the fourth quarter of 2008.

This is a seasonally adjusted annnualised figure which ushers in the first recession in 17 years, Statistics South Africa (Stats SA) data showed on Tuesday.

Growth was expected to have decreased by 3.9% on a quarter-on-quarter basis, according to a consensus survey undertaken by I-Net Bridge. The range of forecasts was from -0.7% to -5.2%.

Non-seasonally adjusted year-on-year (y/y) GDP in the first quarter was placed at -1.3% from 1.0%.

Fanie Joubert, economist at Efficient Group, said it's a terrible figure: "It's much worse than what the market expected; it's almost double ... This confirms that South Africa is in a technical recession and growth is under pressure."

I-Net Bridge

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Derek
Oct 18 2009 20:26 Report this comment

We toyed with the Repo-rate upward. Nothing. Now, we're toying around with it going downward ('scuse the pun). What's happened thus far? Nothing... except that pensioners' savings are quickly being whittled away. Meanwhile, our essential services e.g. Electricity, Telecoms, Food, Fuel, Health, Education etc. keeps rising, rising, and rising fast! Correction. Prices are being raised, and being raised often! There's no respite. And no redress. They're carrying on as though we're in boomtown! Unscrupulous parastatals, corporations, and monopolies need to be curbed, and with haste, before they, and their shareholders flush what remains of our economy down the proverbial loo!

sandi jodi
Aug 26 2009 10:16 Report this comment

the president is not doing that much in terms of improving infrastrature and this causes crisis of marchs that could affect the 2010 world cup fields.

R Carolus
May 28 2009 20:43 Report this comment

Virginia. Try and unglue your caps lock, or were you meaning to shout? If the latter then please try and learn some manners if you want anyone to bother about what you write.

Tshepo
May 27 2009 14:36 Report this comment

My comment is on Cosatu, why are they pushing people to strike, i mean really now. the companies are batling to survive, and now u what high salaries. this is not on. i think Cosatu should tell their members to hold on, until the situation gets better, or ask for reasonable increases or requests. the funny thing is when companies like Metrobus liquidates, all the people will be jobless, i mean they can survive with what they get now, while the Union negotiate with the employers.

Louise
May 26 2009 20:40 Report this comment

Spare thought for hundreds of thousands South Africans - fellow countrymen - who have already lost their jobs as companies cut staff in these difficult times. This will be a true test of the character of the nation - also fat-cat civil servants, some politicians and company CEs- who have for years not hesitated to milk the worker to oil his own pocket. It's time for everyone to reach out to unemployed victims of the recession.

Al
May 26 2009 17:26 Report this comment

So at last the figures show what most households in the country have been experiencing over the last 6-7months. I know very little about economics but enough to know that far few taxpayers are contributing to an increaingly overburdened state infrastructure. I agree with Virginia... it really is time to pull together. Ever heard of the 'talent' skill network. People earn a 'virtual currency' by providing skills, products and services which in turn they can use to 'purhcase' from others. Sensib

VIRGINIA
May 26 2009 16:29 Report this comment

I THINK IT IS ABOUT TIME PEOPLE STOPPED MOANNG.wHEN WE WERE YOUNG WE GREW VEGETABLES AND BREAD WAS BAKED, OUR MOTHERS MIXED YELLOW AND WHITE MARGERINE TO GO FURTHER MEAT WAS AN OPTION ON WEEKENDS.START MAKING ENDS MEET. SURELY ALL THE NEIGHBOURS HAVE GREAT IDEAS OF HOW NOT TO SPEND, HELP EACH OTHER TO GET THROUGH THIS PERIOD, ESPECIALLY THOSE WHO DO NOT HAVE WORK.SEND FOOD HOME WITH YOUR DOMIESTICS IF YOU CAN AFFORD IT, SHE INTURN CAN HELP THE NEIGHBOUR WHO HAS NO WORK.

KOBUS
May 26 2009 15:57 Report this comment

:( Once again I would like to express my sadness about people who would rather trade insults than use their brains to THINK!


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