Prospects remain bleak for South African growth

JOHANNESBURG: Amid signs the rest of the world may be recovering from the global financial crisis, Africa is still being hammered. South Africa's economy, the continent's largest, shrunk by another 3 percent in the second quarter, an omen that things may get even worse before they improve.

South Africa, among Africa's most diversified economies, had already seen a plunge in demand for the cars, machinery and other goods it produces.

Africa's larger economies are more directly affected by the crisis, but even smaller economies are feeling pinched, said Richard Mkandawire, an economist at the African Union's development agency.