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 yesterday.
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 what the market expected. This confirms that South Africa is in a technical recession and growth is under pressure.’ – I-Net Bridge
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