[ad_1]
South Africa’s Gross Domestic Product (GDP) for the second quarter of 2020 declined by a mammoth 51%, primarily as a result of the Covid-19 lockdown that took effect during that period, a report from Stats SA shows.
Source: Stats SA
Quarterly seasonally adjusted annualized GDP adjusted for inflation and seasonal changes, expected to show a sharp decline in the first quarter as a result of the five-week lockdown to halt most of the economic activity.
The 51% drop was not far from the 50% drop predicted by Efficient Group chief economist Dawie Roodt on the MoneyWebNow podcast on Tuesday morning.
Roodt expected the lifting of some lockdown restrictions to lead to a recovery in the third quarter, but he expected GDP for the year to fall around 10% over the year.
The drop in growth was generalized, with no industrial sector showing increases. The only increase was in agriculture, forestry and fisheries with an increase of 15.1% and a contribution of 0.3 percentage points to GDP growth.
Increasing [in agriculture, forestry and fishing industry] It was mainly due to increased production of extensive crops and horticultural and animal products.
Source: Stats SA
“The manufacturing industry contracted 74.9% in the second quarter. All ten manufacturing divisions reported negative growth rates in the second quarter. The divisions that contributed the most to the decrease were iron and basic steel, non-ferrous metal products, metal products and machinery; food and drinks; and petroleum, chemical products, rubber and plastic products ”, informed Stats SA.
“Real GDP not adjusted to market prices for the first six months of 2020 decreased by 8.7% compared to the first six months of 2019.”
The impact of the blockages on households was severe, with household final consumption spending decreasing 49.8% and contributing -30.8 percentage points to total growth. “The biggest decreases were in durable and semi-durable goods expenses, as the sale of these goods was heavily restricted during the closing.”
- The manufacturing industry contracted 74.9%
- The commerce, catering and accommodation industry decreased by 67.6%
- The transport, storage and communications industry decreased by 67.9%
- The mining and quarrying industry decreased by 73.1%
- The financial, real estate and business services industry decreased by 28.9%
GDP Q2 -51.0%. All sectors contracted, except Agriculture, which contributed 0.3 percentage points to quarterly GDP. #SAGDP
– Thabi Leoka (@thabileoka) September 8, 2020
South Africa’s GDP shrank by a whopping 51% in the second quarter of 2020 measured quarter over quarter. Mining fell 73%, manufacturing 75%, transportation plummeted 68%, construction 77% and retail 68%. By contrast, agriculture grew by 15%. Great impact of the economic blockade
– kevin lings (@lingskevin) September 8, 2020
[Thread]Steep drop in #GDP how # COVID-19 takes its toll on the #economy. South Africa’s economy contracted 51% in the second quarter of 2020.#StatsSA pic.twitter.com/tEYvfTfdFC
– Statistics SA (@StatsSA) September 8, 2020
Closures and length and depth are important! SA GDP made and dusted. More lockdown tests kill economies. The Reds are countries of prolonged blockade. Softer and shorter yellow locks. Green without closures. Orange is statewide differences. Uncertain blue. but all countries had COVID. Red is bad! pic.twitter.com/seWozgQNMA
– mike schussler (@mikeschussler) September 8, 2020
Terrifying economic figures. Stenographic summary: no tax revenue and unemployment. https://t.co/2CyQXQkrYy
– Magda Wierzycka (@Magda_Wierzycka) September 8, 2020
[ad_2]
