South Africa edges toward recession with drop in mining
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South Africa edged closer to a recession Wednesday on news that the economy had shrunk by 1.2 percent in the first three months of 2016 amid a fall in production at the country's mines.
South Africa's statistics agency said mining, which contributes nearly 8 percent to gross domestic product, fell 18.1 percent in the first quarter as worldwide demand for commodities remained low.
Growth was also hit by a protracted drought, with agriculture, which makes up 2.2 percent of GDP, shrinking for the fifth consecutive quarter. Agricultural production has fallen by 14 percent since the fourth quarter of 2014.
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The economics figures were released as credit ratings agency Fitch released its latest assessment of South Africa's economy by leaving the country's rating unchanged at "BBB-", one level above junk status.