South Africa's economy has contracted for the first time since the global crisis five years ago, raising the spectre of recession in Africa's most developed economy.
Statistics South Africa reported today that the economy shrank by 0.6 per cent in the first quarter, a stunning reversal amid a rapid boom elsewhere in the continent.
The South African economy has struggled to recover since the 2009 crisis and the possibility of another recession, two consecutive quarters of negative growth, is not being ruled out.
"This makes for grim reading," said Razia Khan, Africa's regional head of research for Standard Chartered Bank.
The first quarter contraction -- which is annualised and adjusted for seasonal variations -- was blamed largely on a slump in the mining sector and a significant drop in manufacturing.
Khan said the figures showed an end to a crippling a platinum strike, now in its fifth month, and serious economic reforms were "even more of an imperative."
"In their absence, growth might continue to languish at these weak levels."
The worse-than-expected data comes during the first full day on the job for South African finance minister Nhlanhla Nene.
