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South Africa's economy cut in half in Q2

Christian Fernsby ▼ | September 9, 2020
South Africa's economy contracted by 51 percent in the second quarter of 2020 due to the impact of coronavirus, said Statistics South Africa on Tuesday.
South Africa
Economy cut in half   South Africa
This was South Africa's fourth consecutive decline in quarterly gross domestic product since the second quarter of last year.

Topics: South Africa

The data showed that the manufacturing sector declined by 74.9 percent in the second quarter. Another sector which suffered a huge decline of 67.6 percent was trade, catering and accommodation.

"Decreased economic activity was reported in wholesale trade, retail trade, motor trade, catering and accommodation," said Stats SA. The industry struggled due to lockdown restrictions as catering and accommodation were not fully operated.

The mining and quarrying sector saw a decline of 73.1 percent. Stats SA said the demand for minerals was low due to the pandemic.

"Owing to global lockdown restrictions, demand for mineral products fell, contributing to decreased production in platinum group metals (PGMs), gold, iron ore, chromium ore and coal," it said.

Labor federation Cosatu said these statistics were not shocking but depressing for many citizens.

"Unfortunately, beyond these figures is a reality that sees more people sliding into poverty and unemployment in this country," Cosatu spokesman Sizwe Pamla said.