Posted by: Home Strange Home | June 3, 2009

South Africa Officially in Recession

Last week, South Africa reported its 1st Quarter 2009 GDP as being down 6.4% versus the same period last year.  This follows own from another decline of 1.8% in the 4th Quarter of 2008.  With two consecutive quarterly contractions in GDP, this means that South Africa is officially facing its first recession since the dawn of its democracy. 

The recession is believed to be part of the wider global downturn.  The South African Reserve Bank has responded with an aggressive stance on monetary policy, cutting interest rates on two consecutive occasions and meeting on a monthly basis. 

South Africa is the most important economy in the region and the South African Development Community (SADC).  Indeed, it is the most important economy in the entire continent, with by far the largest GDP (Egypt being in second place).  The two economic powerhouses of Sub-Saharan Africa are South Africa and Nigeria, which taken together comprise 56% of SSA’s GDP.     

Source: BBC This Week in Africa

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