South Africa’s Economy SlowsMay 28th, 2009
For the first time since 1992, South Africa, the African continent’s largest economy, has slipped into a recession. The country’s gross domestic product fell 6.4 percent, its largest fall since 184. While the nation has seen a boost in construction due to next year’s World Cup ceremonies, the manufacturing and mining industries (which make up sizeable chunks of the African nation’s economy as a whole) have slowed down, the BBC reports. “It’s far worse than we expected,” an economist told the news service. “It confirms the recession in the economy and certainly increases concerns about overall growth for 2009, given such a bad start for the year.” In response, the Reserve Bank of South Africa will cut interest rates by one percent.