The economy shrank 1.4% in quarter four, from a revised contraction of 0.8% in the previous quarter
SA’s slipped into a much deeper contraction in the fourth quarter than economists expected as it recorded its second recession in less than two years.
The fourth quarter contraction compared to a revised contraction of 0.8% in the previous quarter. Stats SA had previously put that decline at 0.6%. The outcome is also well below revisions to growth forecasts made by a number of multilateral agencies, including the International Monetary Fund, which had expected the SA economy to grow 0.7% during 2019.
On the expenditure side of the economy, growth contracted 1.2% in the fourth quarter, deeper than a revised 0.4% decline in the third quarter. A key contributor to the decline was a sharp 10% decline in gross fixed capital formation, which is seen as an indicator of fixed investment in the economy. On an annual basis, expenditure on GDP grew just 0.1% for the full 2019 year.
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