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JOHANNESBURG. — South Africa’s rand slumped and bonds weakened yesterday after official data showed the economy contracted more sharply than expected in the first quarter.
The rand was more than 1 percent weaker at 14,60 per dollar after the figures showing growth nosedived 3,2 percent in January-March compared with the previous three months.
Economists had only expected a 1,7 percent contraction.
Year-on-year growth in Africa’s most industrialised economy was zero compared with forecasts for growth of 0,7 percent.
Bonds also weakened, with the yield on the benchmark 10-year issue up 4 basis points at 8,45 percent following the data release. — Reuters.
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