6 September 2017
South Africa’s economy is out of recession after a second quarter GDP growth of 2,5% quarter-on-quarter. Gross domestic product (GDP) contracted by 0,7% in the first quarter of 2017, following a decrease of 0,3% in the fourth quarter of 2016 pushing the country into a technical recession.
Although this is much-needed growth that will be welcomed by all South Africans, Agri SA is concerned that it will have a limited positive effect on the economy as longer-term indicators suggest subdued growth.
The country is still battling with record high unemployment and poverty levels, low investment confidence and uncertainty in the policy environment. South Africa has not achieved three consecutive quarters of growth since 2014/15, making it one of the worst performers among emerging market economies.
This is due to its unstable political environment and the associated policy uncertainty, corruption and a lack of economic and political leadership.
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