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South Africa first quarter GDP falls 2% as recession continues

Christian Fernsby ▼ | June 30, 2020
South Africa’s economy decreased by 2.0% in the first quarter of 2020, Statistics South Africa reported on Tuesday morning.
South Africa street
GDP   South Africa street
This extends the technical recession that the country found itself in in the last quarter of 2019.

Topics: South Africa GDP

The release of Stats SA’s latest quarterly GDP figures comes a week after Minister of Finance Tito Mboweni tabled his supplementary budget in response to the coronavirus pandemic.

Treasury now expects SA’s GDP to contract by a record 7.2% in this year, while tax revenues are projected to fall R300 billion short of the what was estimated in February budget.

“The electricity, gas and water industry contracted by 5.6% in the first quarter, largely due to decreases in electricity distributed and water consumption. The construction industry decreased by 4.7%. Decreases were reported for residential buildings, non-residential buildings and construction works,” said Stats SA in its report on the GDP figures released on Tuesday.


 

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