1 minute read
9 Sep 2020
4:52 am

It’s a catastrophe from any angle


The danger, too, of the 'half the economy disappeared' narrative is that it will be used to attack the idea of lockdowns as a pointless exercise.

Picture: iStock

For those not well-versed in the arcane parts of economics and finance, yesterday’s announcement by Stats SA that the country’s gross domestic product (GDP) declined by an annualised 51% would have been a seismic shock. Half the economy has vanished because of the effects of the government strict Covid-19 lockdowns? Well, not exactly. The annualised metric is somewhat misleading in the current, unprecedented, situation brought about by the coronavirus and the attempts to combat it. Stuart Theobald, chairman of Intellidex, tweeted yesterday that the actual economic activity in the second quarter of 2020 (when lockdowns in South Africa were at...