South Africa enters second recession in two years as economy shrinks by 1.4%

South Africa has recorded a second recession in the space of two years after its economy reportedly slumped by 1.4% in the fourth quarter of 2019.

The country, according to reports, had earlier recorded a 0.8% contraction in the third quarter of last year as persistent power cuts continue to hamper manufacturing, agriculture and mining.

Power cuts, according to the BBC, are expected to continue for another 18 months, meaning South Africa’s economic woes will continue.

While the country's record of unemployment hovers around 30 per cent, the economy only grew by 0.2% throughout 2019, a drop that did more harm than good.

BBC claimed that the recession will further complicate President Cyril Ramaphosa’s reform agenda, which includes slashing the public sector wage bill, rooting out corruption and turning around failing state companies.

BBC