South Africa’s Q1-19 GDP Result: On the Way to Another Recession?

Proshare

Friday, June 14, 2019   / 05:00PM / United Capital Research  / Header Image Credit:SABC News

 

The Statistics South Africa (Stats SA) recently released South Africa’s GDP data for Q1-19. According to the report, momentum in Africa’s most advanced economy continues to falter amid myriads of economic and socio-political challenges. 

GDP plunged -3.2% in Q1-19 following a +1.4% expansion in the preceding quarter (Q4-18), reaffirming the prevalence of challenges in the S/African economy. Key among the challenges bedeviling the economy includes; rising debt burden, wide income inequality, increasing level of unemployment, epileptic power supply, and sharp declining activities in the mining sector, to mention but a few. 

A further search into the report showed that the country’s GDP was majorly dragged by weaker performance in the manufacturing, mining, and trade, catering & accommodation industries, all trending southwards by -8.8%, -10.8% and -3.6% respectively for the period under review. 

We note that the negative start in the country’s GDP growth rate for the year mirrors the beginning of the prior year, 2018, when it recorded declines in GDP growth for the first two consecutive quarters of the year driving the economy back into a (technical) recession. 

Though the swift cabinet reformation by the president Cyril Rhamaphosa, has been welcomed with much applaud, weobserve that the president most very quickly implement policy reforms to urgently address these challenges or risk the economy slidingback into another recession by Q2-19. 

 

Top African Stories

Kenya to raise capital gains tax to shore up revenues: Kenya will more than double its capital gains tax rate to 12.5% from 5% to bring it in line with international standards, Finance Minister Henry Rotich said in budget proposals to parliament on Thursday.  Reuters 

Cocoa buyers agree to floor price proposed by Ghana, Ivory Coast: Buyers of Ghana and Ivory Coast cocoa agreed on Wednesday to a minimum price of $2,600 per tonne, as proposed by the two governments to address a perceived imbalance between farmers’ incomes and money made by big commodities traders.  Reuters 

South Africa's Q2 business confidence is unchanged from Q1: South Africa’s business confidence in the second quarter remained unchanged from the previous quarter, a survey showed on Thursday, as the country struggles to boost growth. Reuters  

IMF approves disbursement of $248.15 mln under Angola's credit facility: The International Monetary Fund said its board had completed the first review under Angola’s extended arrangement and approved a disbursement of $248.15 million, taking the total of such payments to about $1.24 billion. Reuters 

 

                                                

Looking Forward

Egypt

Apr-19 Trade Balance – June 18

Q1-19 GDP  - June 27th

 

Ghana

Q1-19 GDP - June 19th

PPI YOY– June 19th

 

Kenya

May-19 (CPI) Inflation - June 29th

 

Morocco

Policy Rate Decision –June 18th

 

Nigeria

May-19 (CPI) Inflation - June 17th

 

Rwanda

Q1-19 GDP - June 12th-22nd

 

Tunisia

Policy Rate Decision - June 11th-21st

 

 

Visit African Markets in Proshare MARKETS

 

Proshare Nigeria Pvt. Ltd. 

 

Proshare Nigeria Pvt. Ltd. 

 

Related News

1.       Togo Gets S and P’s ‘B and B’ Rating: To Join The Eurobond Bandwagon?

2.      South Africa's Rand Continues To Tumble On Central Bank Worries

3.      South Africa’s Economic Slump-A Huge Signal for Structural Reforms

4.      No-Deal Brexit More Likely; Path Ahead Remains Unclear

5.      Cabinet reshuffling in South Africa: Any lesson for Nigeria?

6.      London Cedes World’s Financial Centre Status To New York As Brexit Worries Weigh On The City

7.      The USA-ChinaTrade War – A Ploy To Colonise China?

8.     BMW, Daimler Most at Risk of US Tariff Rise, China Reprisal

9.      New Tariffs Would Signal Prolonged US Corporate Headwind

10.  African Countries: Taking the Easy Way Out?

11.   Emerging Market Demand Responsive to Global Financing Conditions – Fitch

12.  Tough Economic Lessons From Ghana

13.  Banks in AAA Jurisdictions Face Rising Household Debt Risk

14.  South Africa’s Credit Rating Postponement: A breather?

15.   Global Trade Growth Slows Down To 3.3% In 2018


Proshare Nigeria Pvt. Ltd.

 

READ MORE:
Related News
SCROLL TO TOP