Recession in perspective
South Africans’ wounded pride was dealt a double blow last week with news of a technical recession and a further credit ratings downgrade. The South African economy declined in real terms at an annualised rate of 0.7% quarter-on-quarter in the first quarter of 2016, pushing the country into a technical recession. The consensus forecast was for gross domestic product (GDP), a broad measure of economic activity, to grow at 0.9% on a seasonally-adjusted and annualised basis, so the data disappointed expectations for a modest recovery.