First quarter GDP decreases by 2%
The effects of lockdown have forced GDP down by a significant number.
AFP/File/STR
South Africa’s gross domestic product decreased by 2% in the first quarter of 2020 thus continuing the country’s recessionary trend.
This followed the economy shrinking by 1.4% in the fourth quarter of 2019.
The obvious effects of the Covid-19 lockdown have begun filtering through the economic system, dragging most sectors into the red.
Globally South Africa is not alone in this quagmire, as the United Kingdom reported a 2.2% contraction of its economy in its first quarter.
Locally, the mining and quarrying industry decreased by 21.5%.
The key manufacturing industry took a hit of 8.5% downward. Seven of the ten manufacturing divisions reported negative growth rates in the first quarter.
Despite this, agriculture, forestry and the fishing industry increased by 27.8%. The uptick was mainly due to increases in the production of field crops, horticultural products and animal products.
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.
Finance, real estate and business services increased, by 3.7%, in the first quarter.
For more news your way, download The Citizen’s app for iOS and Android.
