South Africa’s economy contracted the most in a century in 2020 as restrictions to curb the spread of the coronavirus pandemic ravaged output and disrupted trade.
GDP shrank 7%, compared to a 0.2% expansion in 2019, according to a report released by Statistics South Africa on Tuesday. That’s the biggest decline since 1920, when output dropped by 11.9% during the two-year post-World War 1 recession, central bank data shows.
GDP expanded an annualised 6.3% in the three months to December from the previous quarter, following a revised 67.3% increase in the three months to September. The median estimate of 15 economists in a Bloomberg survey was for a 5.6% increase. GDP contracted 4.1% year on year in the fourth quarter, which means output is still down from 2019.
Other Key Points:
- Expenditure on GDP grew at an annualised 6.5% quarter on quarter in Q4.
- Household spending rose at an annualised 7.5%.
- Fixed capital formation grew at an annualised 12.1%.
- The agriculture industry rose at an annualised 5.9% quarter on quarter in Q4.
- Mining fell at an annualised 1.4%.
- Manufacturing rose at an annualised 21.1%.
- The trade industry rose at an annualised 9.8%.
- The finance industry fell at an annualised 0.2%. — Reported by Prinesha Naidoo, (c) 2021 Bloomberg LP