AGRICULTURAL NEWS - South Africa has entered a recession for the first time since the global economic meltdown of 2008/2009, with the agriculture sector the main contributor to the overall GDP decline measured in the second quarter (Q2).
A recession is defined as two or more consecutive quarters of negative growth. Statistics SA (Stats SA) announced on 4 September that the country’s economy had fallen another 0,7% after having already contracted by a revised figure of 2,6% in Q1.
“The 0,7% downturn in the second quarter of 2018 was a result of a fall-off in activity in the agriculture, transport, trade, government and manufacturing industries,” Stats SA stated.
The agriculture, forestry and fisheries sector was also technically in recession, with production having fallen 29,2% in Q2 and 33,6% in Q1. Stats SA said the sector had contributed -0,8% of a percentage point to GDP growth in Q2 due to a decrease in the production of field and horticultural crops.
