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Pretoria - South African Reserve Bank governor Gill Marcus said on Tuesday she did not see the economy going into recession, despite a GDP contraction of 0.6% in the first quarter.
"It would have to be a very dramatic decrease on the numbers that are already there for us to go into a recession, so we don't see that happening," Marcus told a forum after the Reserve Bank released its June monetary policy review.
The decline in first-quarter GDP to negative levels, the dramatic decline in the purchasing managers' index, the sharp rise in producer inflation and the worsening trade deficit have all sparked fears that South Africa could be heading for a recession.
The National Association of Automobile Manufacturers of SA (Naamsa) was the latest industry body to add its concern after year-on-year (y/y) new vehicle sales declined by 9.2% last month.
"The South African economy was losing momentum and risked moving into recession," Naamsa said in a statement.
"It would have to be a very dramatic decrease on the numbers that are already there for us to go into a recession, so we don't see that happening," Marcus told a forum after the Reserve Bank released its June monetary policy review.
The decline in first-quarter GDP to negative levels, the dramatic decline in the purchasing managers' index, the sharp rise in producer inflation and the worsening trade deficit have all sparked fears that South Africa could be heading for a recession.
The National Association of Automobile Manufacturers of SA (Naamsa) was the latest industry body to add its concern after year-on-year (y/y) new vehicle sales declined by 9.2% last month.
"The South African economy was losing momentum and risked moving into recession," Naamsa said in a statement.
