020 7898 0500Reports from South Africa showed that the country’s economy had contracted during the second quarter of the year, increasing the risk of a recession for a nation grappling with a plunging currency. Power constraints and a slump in commodities have reduced output, slowing the economy’s recovery. South Africa’s Rand fell to a record low of 14.07 against the USD, but this has had little effect on their recovery as it has only offset the drop in commodities. With lending set to slow due to rising interest rates it is hard to see an economic recovery any time soon.
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