The punch in the gut was severe. Perhaps the second quarter of 2020 will become known as the pandemic quarter. South Africa’s economy suffered a significant contraction during April, May and June, when the country operated under widespread lockdown restrictions in response to COVID-19.
Gross domestic product (GDP) fell by just over 16% between the first and second quarters of 2020, giving an annualised growth rate of ‑51%.1
This contraction dwarfs the annualised slowdown of 6,1% recorded in the first quarter of 2009 during the global financial crisis. Historical data from 1960, sourced from the South African Reserve Bank, show that the second quarter of 2020 experienced the biggest fall in GDP since that year, far steeper than the annualised 8,2% decline in the fourth quarter of 1982.2
In constant 2010 prices, the country generated almost R654 billion (not annualised) in the second quarter of 2020. This was the lowest level of production since the first quarter of 2009 when the economy generated R649 billion. Read more…
