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South Africa in Recession, Figures Show

Anita Powell

   JOHANNESBURG - The official announcement that South Africa is in
   recession only confirmed what many South Africans, beset by high
   unemployment and unreliable electricity, already knew: The economy is
   flagging.

   This week, the nation's statistical agency announced the gross domestic
   product had shrunk by 1.4 percent in the fourth quarter of 2019. That
   means two consecutive quarters of contraction, making this officially,
   for the third time in the history of democratic South Africa, a
   recession. The nation shed the apartheid system with its first
   inclusive elections in 1994.

   "Multiple domestic challenges persist, notably, the security of
   electricity supply with heightened rotational load-shedding impeding
   the optimal functioning of the economy," economist Lara Hodes of
   Investec Bank said. "Additionally, persistent policy uncertainty and
   the slow implementation of crucial reforms continue to weigh on
   business and consumer confidence, inhibiting satisfactory growth."

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