(3 Minutes read)
· South Africans on the street are reflecting over what would be the impact on them of the declining economic indicators, which contracted by 51 per cent in the second quarter of this year
· The record contraction has brought most economic activity to a standstill
· The country’s economy was already in recession, which was incidentally second in two years
South Africans on the street are reflecting over what would be the impact on them of the declining economic indicators, which contracted by 51 per cent in the second quarter of this year as reported by www.trendnafrica.com. This unprecedented decline is attributed to the Covid-19 pandemic though the country has never come out of the recession caused by the economic meltdown of 2009.
The man in the street is struggling and most people have lost their livelihood because of the layoff due to widespread closure of manufacturing units. People are not expecting the pangs of the lockdown bottoming out any time soon. The sectors, which are being affected, are the construction, manufacturing and mining sectors. The activities under these heads have been reported to have shrunk by 70%. These sectors also contribute handsomely towards GDP.
The record contraction has brought most economic activity to a standstill. The country’s economy was already in recession, which was incidentally second in two years. The GDP, according to some estimates, have shrunk by two percent during the first three months of 2020.
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