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· South Africa’s gross domestic product (GDP) surged in the quarter between July and September, giving a ray of hope that the turnaround can be faster than expected
· According to official sources, the country’s annual figures rose by 66.1 percent as compared to the previous quarter
South Africa’s gross domestic product (GDP) surged in the quarter between July and September, giving a ray of hope that the turnaround can be faster than expected. According to official sources, the country’s annual figures rose by 66.1 percent as compared to the previous quarter. The impact of the lockdown was more felt during the previous quarters and the economy recorded a contraction of 51% in the last three quarters.
The Africa’s most vibrant economy was in the grip of a recession even before the onset of pandemic. The contraction was further accentuated by the Covid-19. GDP shrank by 6% in the third quarter after a revised 17.5% contraction in Q2 as compared to the previous year.
In the July-September quarter, major growth segments were manufacturing, trade, and mining. Continued power shortages and slow structural reforms are still affecting the economy. There is also an improvement in the unemployment rate at 30%, a shade lower than the one noticed in the previous quarter. Analysts say that the economy might have to grow by another 5% top spur more growth and employment since the present growth figures are mostly due to base effect.
