The largest economy of the African subcontinent, South Africa has been hit by the recession. There has been a decline in the country’s manufacturing and mining sector and has contributed to this recession. The country has undergone recession for the first time since 1992.

The growth rate of South Africa has contracted by 6.4 percent as compared to the last year. The construction sector is on the rise due to the government investment for the football tournament World Cup in 2010. Although, the recession and slowdown are the buzz word doing the rounds on the global scale, it signifies a bad start for the South African nation. The Reserve Bank of South Africa is yet to take its decision on the cuts on the interest rates.

The main contribution for the contraction in the economy’s growth is the negative demand in the mining sector due to global slowdown. Similarly, manufacturing and the quarrying sector has also contributed to this contraction in the growth due to the falling demands. Its time for the South African government to face the economic storm and do its best to survive this global crisis.

Via:BBC