Figures came far below market expectations for a 0.5 percent expansion. Yet, the country has been struggling with several power shortages and lower commodity prices, dragging mining and manufacturing down.
Manufacturing contributed the most to contraction, declining for the second straight quarter by 6.3 percent due to lower production of basic iron and steel, non-ferrous metal products, metal products and machinery; and petroleum, chemical products, rubber and plastic products.
The mining sector shrank 6.8 percent due to lower production of coal and other metal ores and agriculture fell 17.4 percent, mainly due to drop in the production of field crops and horticultural products.
In contrast, finance, real estate and business services expanded by 2.7 percent due to growth in financial markets and banking sector and personal services went up by 1.3 percent.
Year-on-year, the economy expanded 1.2 percent, the worst performance since a 2009 recession.