South Africa’s GDP (Gross Domestic Product) rose by 66.1% between July and September this year (Q3 2020), occasioned by the uplifting of the COVID-19 restrictions. This compares to a 51% shrinkage in Q2 2020 when the nationwide lockdown was in force.
Compared to the same period in 2019, GDP shrank by 6% in the third quarter after a revised 17.5% contraction in Q2.
This major growth was mainly recorded from manufacturing, trade, and mining. However, the recovery remains vulnerable, with power shortages and slow structural reforms likely to weigh on sentiment.
Eskom’s aging infrastructure, which is prone to multiple breakdowns, has seen the firm intensify load shedding to protect the national grid.
Unemployment also remains low, at 30%.
The Country’s GDP shrank an annualized 51% between April and June from the previous January to March quarter when the economy contracted by 1.8%.
According to its Statistics Office, this is the steepest decline since 1990, the downturn extending into the fourth quarter.