The economy had contracted by 0.6% in the first quarter. A platinum strike in the country was blamed for the poor performance in the first three months.South Africa was last in recession in 2008 amid the global financial crisis.By 2011 it had made a substantial recovery, but there have been worries recently that it would slip back.Africa's most advanced economy, and the continent's second largest, grew by 1% compared with the same period a year earlier, against annual growth of 1.6% in the previous quarter.South Africa's agriculture sector grew by 4.9% in the second quarter, while its financial sector expanded by 1.5%.Meanwhile, the under-pressure mining sector contracted by 9.4% from the previous quarter while the manufacturing sector shrank by 2.1%.
Analysis: Lerato Mbele, BBC Africa business correspondent, Johannesburg
South Africa has narrowly avoided a recession. The focus should now be on growth.The country has a high unemployment rate and more than eight million people out of work. To create jobs for a tenth of these citizens, South Africa would need to grow by at least 6% each year, experts say.But even in the good years, before the 2008 global credit crisis, South Africa struggled to reach these numbers. Leaders, trade unions, researchers and voters have wondered how the most advanced and industrialised economy in Africa could fall so far back.The answer lies somewhere in the archaic structure of the economy.Mining is often referred to as the backbone of the economy, yet the sector makes up less than 10% of total economic activity. However, the mines earn more than 50% of the country's foreign exchange from their mineral exports.Another major area of concern is manufacturing. South Africa's factories are not producing as much as before, mainly because of competition from Asia, and production costs are rising.Fuel and electricity prices are higher, and the weaker South African currency has not helped the situation.