Fri. Jul 3rd, 2020

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GDP Sees 2% Decline In 1st Quarter, Before COVID-19 Lockdown

GDP Sees 2% Decline In 1st Quarter, Before COVID-19 Lockdown

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The country’s recession is deepening, with Statistics South Africa announcing that the economy continued to contract in the first quarter of the year.

The gross domestic product for the period is a 2% decline as compared to a 3.2% contraction for the same period last year.

This does not include post lockdown data on the economy’s performance.

Statistician-General Risenga Maluleke has confirmed that the economy remains in a recession, with mining and manufacturing the significant contributors to the economy’s poor performance.

Mining figures saw the biggest decline in six years, with data showing it slowed by 21.5%.

The economy has been mired in recession after the release of the fourth quarter of 2019 when GDP figures showed it had contracted by 1.4% after a 0.8% decline in the preceding quarter.

Economic activity in the manufacturing industry decreased by 8.5% – a third consecutive negative growth – while construction registered its seventh, slipping by 4,7%.

GDP refers to the total market value of all goods and services that are produced in the country yearly and serves as an indicator of economic growth.

EWN

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