Tuesday, May 26, 2009

SA in recession as GDP tanks





And Trevor Manuel, our previous Finance Minister, now Minister of Alpha and Omega "Government will Solve All Problems" said 3 months ago that South Africa will avoid a recession.

Oops!

Fin24.com

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 annualised figure which ushers in the first recession in 17 years, Statistics South Africa (Stats SA) data showed on Tuesday.

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 ... This confirms that South Africa is in a technical recession and growth is under pressure."

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