Johannesburg, Aug 19 - The contraction of South Africa's gross domestic product (GDP) by three percent for the second quarter of 2009 indicates the economy is still in recession, BuaNews reported Wednesday citing an expert.

Business Unity South Africa (BUSA) a business association, deputy chief executive officer Raymond Parsons said the figure released by the statistics department showed the rate of negative growth in the economy has slowed, but the country is still in a recession.

The country's GDP for the second quarter of the year contracted by three percent compared to a 6.4 percent contraction in the first quarter.

'Although the rate of the negative growth in the economy has slowed, the global crisis continues to bite deep in South Africa.