![\"GDP](\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2016\/09\/GDP-2016.png\")
<\/a><\/p>\nWhere to next?<\/strong><\/p>\n Economists were split on the data ahead of the announcement, with predictions varying between 2.5%-plus, to even some expecting a slip into a technical recession.<\/p>\n A technical recession is defined by two successive quarters of decline. A number of African nations have suffered this fate in 2016, the most prominent of which is Nigeria, which saw its GDP take a massive hit due to declining oil prices.<\/p>\n Despite the apparent ‘victory’ for South Africa’s economy, the second half of the year remains clouded, with little anticipation for major economic growth.<\/p>\n For Q2 and Q3 of 2016, South Africa still has to face a number of economic hurdles amid political instability and uncertainty around criminal charges against finance minister Pravin Gordhan.<\/p>\n According to financial research group, Nomura, the country’s current path is leading to an all but guaranteed ratings downgrade to junk status in December, and faces a number of potential political shocks along the way – including a possible Cabinet reshuffle.<\/p>\n Read:\u00a0These are the 7 \u2018shocks\u2019 awaiting South Africa if Gordhan is booted<\/a><\/strong><\/p>\n Ratings agencies’ faith in South Africa will be boosted by the GDP data, however they are keeping a close eye on the political situation in the country.<\/p>\n In June, agencies gave South Africa the benefit of the doubt in affirming its current rating, but this was based on the trust that government would clamp down on its fiscal consolidation, and move to a more stable environment. However, the opposite has happened.<\/p>\n Nomura’s view is that should South Africa get pushed over the proverbial cliff by Gordhan’s arrest or removal from Treasury, an economic recession will be back on the cards.<\/p>\n Get ready for R16, R17 or even R19 to the dollar this year: economists<\/a><\/strong><\/p>\n Zuma is running out of time: analysts<\/a><\/strong><\/p>\n<\/a><\/p>\nMore on South Africa<\/h3>\n