SA economy contracts by 0.2%: Isaac Mhlanga weighs in

It's an economic blow. South Africa's economy contracted more than in the third quarter of this year. Gross Domestic Product or GDP decreased by 0.2% between July and the end of September, compared to the previous quarter. That's worse than economists had predicted with a poll by Reuters suggesting a 0.1% drop. On an annualised basis the economy contracted by 0.7%. Of particular concern, the agriculture, forestry and fishing industry declined by nearly 10%. Output from the mining and manufacturing sectors fell by more than 1% and the construction industry declined by nearly 3%. The rand did not react immediately and it's actually strengthened slightly.

We are joined by Isaac Mhlanga chief economist at RMB to discuss this.

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