South African rand weakens after data shows GDP stagnates in first quarter

JOHANNESBURG, June 3 (Reuters) - The South African rand weakened on Tuesday after first-quarter gross domestic product (GDP) data came in marginally better than expected but showed that the economy had stagnated.

Africa's most advanced economy eked out quarter-on-quarter growth of just 0.1% ZAGDPN=ECI, as contractions in sectors like mining and manufacturing offset a strong performance by agriculture.

At 1515 GMT the rand traded at 17.90 against the dollar ZAR=D3, down 0.3% on Monday's closing level.

After the GDP report U.S. bank Citi said it was lowering its forecast for South Africa's economic growth this year to 1.0% from 1.2%, saying that would have negative implications for the fiscal outlook as well.

The coalition government is trying to lift growth through reforms, but longstanding problems like logistics bottlenecks at the ports and on the freight rail network continue to hold back growth.

On the Johannesburg Stock Exchange the Top-40 index .JTOPI closed down about 0.4%.

The benchmark 2035 government bond ZAR2035= was stronger, as the yield fell 9.5 basis points to 10.11%.