The South African economy is mouldy toast

Recession. Picture:sxc.hu

Yoh! What a terrible day!

Bruce Whitfield, The Money Show

It’s a startling fact that we’re now in a technical recession.

Gina Schoeman, Citi Bank

Gross domestic product (GDP) fell by 0.7% in the second quarter (Q2) of 2018, said Statistics South Africa on Tuesday.

GDP decreased by 2.6% in Q1/2018.

Contractions in agriculture (-29.2%), transport (-4.9%) and trade (-1.9%) were particularly severe.

Economists consider two consecutive quarters of negative economic growth a "technical recession".

Most economists predicted that South Africa would miss falling into a technical recession.

Those polled by Bloomberg expected growth of 0.6%.

The Money Show’s Bruce Whitfield interviewed Gina Schoeman, an economist at Citi Bank.

Listen to the interview in the audio below (and scroll down for more quotes from it).

No one expected the selloff in emerging markets…

Gina Schoeman, Citi Bank

The tertiary sector… is actually weaker than during the recession of 2009…

Gina Schoeman, Citi Bank

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