South Africa has entered into a recession for the second time in a decade.
The news comes not long after two rating agencies downgraded a portion of the country’s sovereign debt to junk status.
Analysts had expected a better performance for the economy and predicted a slight expansion of the country’s economy.
The economy, however, shrank by 0.7 percent in the first quarter of 2017, with all sectors, apart from agriculture and mining receding.following a fall at the end of 2016.
South Africa’s GDP had declined by 0.3 percent in the fourth quarter of 2016.
Meanwhile, the South African markets are also in the red with the JSE Index down 0.525 at intraday.
South Africa has witnessed a political and economic crisis recently as allegations of corruption causing a split in the African National Congress and calls intensifying for the President Jacob Zuma to quit.
The economy took a hit as investors reacted negatively to the Zuma’s decision to fire Mr Pravin Gordhan as Finance Minister in March.