SA economy shrinks 0.6% in third quarter, surprising even pessimists

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Some economists were expecting no growth but the outcome was worse - a contraction.

The economy shrank 0.6% in the third quarter of 2019, Stats SA said on Tuesday, underscoring the plight South Africa is in as it battles rising unemployment, poverty and inequality.

The outcome, which was worse than the market had expected, is likely to raise fears that SA may manage only marginal growth, if any, for the full year. Economists surveyed by Bloomberg were expecting a 0% increase for the third quarter, reports BusinessLIVE.Growth measured in the nine months to September reached just 0.3%, while growth had only managed to reach 0.1% year on year.

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