Finance Minister Nhlanhla Nene says South Africa’ government did not forsee the economy sliding into recession.
He advises his compatriots not to panic and to trust the administration’s plans to get the country back into growth.
Nhlanhla Nene says government expected moderate growth in the second quarter of this year, having seen a shrinkage of 2.6% in the first quarter because of drought impacting on agricultural production and a fall in mining and manufacturing.
Instead the economy contracted a further 0.7% putting the country into what Nene calls a technical recession.
However he paints it, economists are saying its the end of the upbeat mood inspired by the new President Cyril Ramaphosa which was dubbed Ramaphoria.
Nene says the increasingly bitter debate about land reform, which will result in the expropriation of some farmland without compensation, has not caused the recession.
White rightwing pressure groups, who have got the ear of conservatives in Britain and the United States, will disagree.
Nene says South Africans are understandably concerned, but they should have faith in the national develop plan that includes summits on investment and jobs during the course of this year.
The rand has fallen to a two year low, presaging fuel price and interest rate hikes for consumers struggling to make ends meet.