The SA economy has gone into recession, at the same time that it tries to absorb continued political shockwaves in the wake of GuptaLeaks and the recent cabinet reshuffle. Statistics South Africa (StatsSA) announced on Wednesday, that the economy shrank by 0.7% in the first quarter of 2017. This is the second consecutive quarter that the country’s gross domestic product (GDP) declined following a 0.3% contraction in the fourth quarter of 2016. Two consecutive quarters of negative growth is the most widely accepted definition of a recession, according to StatsSA and the last one experienced by the country followed on from the global financial crisis during 2008 and 2009. Despite hopes that a recovery in the agriculture and mining sectors would save South Africa from a contraction – steep declines in a host of other sectors outweighed the potential gains. The trade and manufacturing sectors “were the major heavyweights that stifled production, with trade falling by 5,9% and manufacturing by 3.7%” StatsSA said. Meanwhile the electricity, gas and water industry contracted by 4.8%, according to the agency, due largely due to a decreases in electricity produced in the first quarter. The amount of water distributed also decreased driven by continued restrictions in some parts of the country still recovering from the drought, is said. The news comes after a late night cabinet reshuffle by Jacob Zuma, prompted ratings agencies to downgrade South Africa�

The world Bank on Tuesday slashed the country’s economic growth outlook for this year to 0.6%, from 1.1% it forecast earlier in the year, and said that South Africa’s second quarter growth of 2.5 percent would be insufficient to restore positive per capita gross domestic product (GDP) growth for the year. However, the bank said it expected South Africa’s economic growth for next year to be 1.1 percent, with a growth of 1.7 percent expected in 2019 supported by an improvement in commodity prices and strengthening balance sheets of households. Paul Noumba Um, World Bank country director, said in an environment, where the national budget was constricted, South Africa could turn to encouraging private innovation as one of the several ways in which to improve the lives of the poor. “South Africa’s productivity growth is diverging from global growth and the country risks falling further behind its peers. This would be to the detriment of the poor, for whom a growing economy is necessary for jobs, and a sustainable system of social grants,” Noumba Um said. Last month Statistics South Africa (StatsSA) said South Africa’s weak economic growth, high unemployment, and greater household dependency on credit and policy uncertainty condemned 30.4 million into poverty between 2011 and 2015. The World Bank report also found that productivity in South Africa fell by 6 percent between 2007 to 2016 and attributed this to insufficient private sector investment in inn

What to expect in 2018

Nel told MyBroadband there have been a few consolidations in 2017 that will come to fruition next year, and consumers will reap the benefits. “South Africa is still a tumultuous market for any businesses to operate in, but uncertainty only fuels classifieds from the ground up,” he said. “A weaker economic outlook and high unemployment creates greater consumer interest and participation in the space, because of the ease of entry and associated cost savings.” This should see new players enter the market, coupled with increased marketing spend and investment from established businesses. Nel said Gumtree will also remain true to its goal of helping South Africans trade successfully. “We’ve been the number one classifieds platform in terms of our size and popularity for a number of years now, but we’ve never taken that for granted.” “2018 will see a renewed focus on the quality of the user experience, their needs, concerns, and goals.” The platform will also offer its clients improved advertising services through Gumtree Media. “South Africa is on the cusp of a new, smarter era of online advertising and Gumtree will lead the charge,” said Nel.

Johannesburg, 23 November 2017 – Globally mobile individuals, also known as expatriates or ‘expats’, who choose to live and work in South Africa, cite the adventure (74%), a better quality of life (72%), or to gain international experience (67%) as their reasons for accepting assignments in the country. These reasons are likely to be similar for expats living and working throughout Africa, given the continent’s rapidly evolving markets and abundant natural beauty. This is according to the 2017 Cigna 360° Well-being Survey, which looks at the health, well-being, and sense of security among 2 000 expats living in 20 markets across five continents. Expats around the world, including those working in South Africa, share a high level of concern about the quality of medical care available in the countries they are in. With this in mind, more than half of these individuals consider medical insurance coverage to be a very important factor when considering a move overseas. Perceptions of physical, financial, social, family and work health among expats were also examined and compared with all working people in the 2017 survey. “Our 360° Well-being Survey captures the sentiments of an expat environment that is rapidly evolving. Overseas assign