THE UGLY

Finweek English Edition - - THE WEEK -

The South African econ­omy con­tracted by 0.3% yearon-year in the fourth quar­ter, with the min­ing sec­tor de­clin­ing by a sub­stan­tial 12% in the pe­riod, ac­cord­ing to data by Sta­tis­tics SA. Over­all, GDP in­creased by only 0.3% last year, be­low an­a­lyst ex­pec­ta­tions and a Trea­sury fore­cast of 0.5%, and the slow­est rate since 2009’s re­ces­sion. Slow growth is one of the key risks to the coun­try’s in­vest­ment-grade credit rat­ing, Bloomberg re­ported. No­mura warned that while over­all GDP growth is pos­i­tive, per capita in­come growth is ex­pected to re­main neg­a­tive for another two years, and that un­em­ploy­ment is likely to con­tinue ris­ing.

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