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Fall in mining and manufacturing shrinks South Africa's economic growth

South Africa

<p>South Africa’s economy contracted to 0.3 percent in the last quarter of 2016, due to a fall in mining and manufacturing production .</p> <p>According to the country’s statistics office, the shrinkage in the two key sectors of the economy pulled growth into negative territory.</p> <p>Figures from the agency indicate , the mining industry’s 11.5 percent drop in production was the main contributor to the economy’s slowdown, brought about by a fall in production of coal, gold and other metal ores, such as platinum and iron ore. While manufacturing dropped by 3.1 percent. </p> <p>Overall, the economy grew by 0.3 percent last year compared to 1.5 percent in 2015.</p> <p>Africa’s most industrialised economy faces the risk of being downgraded to junk status owing to weak economic growth after it got a reprieve last year.</p> <p>The country is also struggling with a volatile political climate, falling commodity prices and a chronically high unemployment rate.</p>
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