JOHANNESBURG- Despite the bad news on Tuesday where the South African economy contracted in the first quarter by 2.2% the largest decrease in nine year, economist however are remaining positive.
The agriculture sector saw the biggest dropped, 24% decrease, the other sectors that experienced a decline was mining, retail and manufacturing all down, which dragged the economic growth down.
Goolam Balam an economist is still upbeat and said the economy will slowly start growing again.
He said, “I think we will see the first quarter performance, or rather under-performance, as being an aberration and continued momentum built through the year and even into 2019.”
Azar Jammine an economic analyst agreed, “It isn’t good news but I think one must not panic about it. It is a single quarter’s figures and we have seen these figures influenced by seasonal adjustment processes. We have seen significant and revisions to these kinds of figures in the past.”
Photo Credit- BusinessTech