*Developing story
Cape Town – The South African economy has entered a recession for the first time in eight years after showing negative GDP growth for a second consecutive quarter, Statistics South Africa said on Tuesday.
Growth contracted by 0.7 percent in the first quarter of 2017, after recording negative growth of 0.3 percent in the last quarter of 2016. The main contributor to this was the contraction of the trade, catering and accommodation industry by 5.9 percent over the period. The manufacturing industry contracted by 3.7 percent.
The statistics were released two days after the World Bank slashed South Africa's growth forecast for the year to 0.6 percent in its June Global Economic Prospects report, citing declining investor confidence and lack of political stability.