The data revealed that in the period, the economy generated R1,08 trillion.
People queue at a grocery store in Hillbrow on the first day of the coronavirus lockdown on 27 March 2020. Picture: Sethembiso Zulu/EWN
JOHANNESBURG – South Africa has fallen deeper into recession, with Statistics South Africa announcing that gross domestic product (GDP) has dropped by 51% in the second quarter of this year.
The annualised contraction has been attributed to the effects of the coronavirus and the hard lockdown that saw most industries closed for months.
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Steep slump in #GDP as #COVID19 takes its toll on the #economy. South Africa’s economy contracted by 51% in Q2:2020.#StatsSA pic.twitter.com/tEYvfTfdFC— Stats SA (@StatsSA) September 8, 2020
This is the fourth consecutive decline since the second quarter of last year.
The largest contributors to this drop are the manufacturing, the mining and quarrying industries which contracted by 74.9% and 73.1% respectively.
Agriculture was the only sector with a positive contribution, growing by just over 15%.
The data revealed that in the period, the economy generated R1,08 trillion.
It was further shown that household spending on most products declined in the second quarter, which was in line with the closure of hotels, restaurants, transport services, recreational facilities and many stores during hard lockdown. The ban on the sales of alcohol and tobacco products also impacted spending.
Consumers also spent more on communication services as lockdown regulations kept people at home.
Consumers spent more on communication. Cut off from family and friends – and having to suddenly work and study from home – many consumers increased their spending on communication services.
Read more here: https://t.co/Cu2BvavgTz#StatsSA #GDP #economy pic.twitter.com/apPUs0bTT6
— Stats SA (@StatsSA) September 8, 2020
