South Africa: Economy slips into recession; President Ramaphosa calls it a ‘transitional issue’
- September 13, 2018
In a major shock to South African President Cyril Ramaphosa, the country has slipped into its first recession since 2009, as per new data released on Tuesday.
However, Ramaphosa called the slide into recession a “transitional issue” from which the country would soon recover.
“All these things that are happening now are transitional issues that are going to pass,” Ramaphosa was quoted by local news agency, in his first comments on the recession shock.
“I will be meeting with the business community soon, so that we rally everyone together and pull our country out of the situation that we are in,” added Ramaphosa, who was attending a China-Africa summit in Beijing when the data was released.
According to the data, the economy has shrunk 0.7% in the second quarter, and the rand has slumped more than 5 percent against the dollar this week.
While several foreign banks have slashed their growth forecasts for South Africa to less than 1% this year, Ramaphosa’s party, the ruling African National Congress, said that “prolonged trend of slowdown in economic growth was the reason behind the recession and thus, there was an urgent need for measures to reverse the economic decline.”
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