STAFF REPORTER
PRESIDENT Cyril Ramaphosa says that the 13.5% rebound in the GDP during the third quarter of 2020, or 66.1% on an annualised basis, shows that a strong economic recovery is possible, even as the economy remains below its pre-pandemic levels.
“The strong rebound in GDP growth for the third quarter provides support for the approach that we have taken both to confront the pandemic and to protect the economy. Our task now is to ensure that this momentum is sustained, to enable a full recovery of the economy,” said Ramaphosa.
Stats SA announced on Tuesday that South Africa’s economy rebounded in the third quarter of 2020 (July–September), coinciding with the easing of COVID-19 lockdown restrictions.
Gross domestic product (GDP) grew by an estimated 13,5% in the third quarter, giving an annualised growth rate of 66,1%.1 This follows the significant slump of 16,6% (annualised: -51,7%) in the second quarter during the most restrictive months of the lockdown (April, May and June), according to Stats SA.
Ramaphosa said the GDP growth in the third quarter surpassed even the most optimistic market expectations, with a surprisingly swift increase in economic activity as most restrictions designed to contain the spread of COVID-19 were lifted.
“Gross fixed capital formation also increased at a rate of 26.5%. While GDP contracted 6% year-on-year, the strong increase from the second quarter suggests that the economy is recovering more quickly than expected,” said Ramaphosa.
“In recent months, encouraging green shoots have emerged which provide a foundation for economic reconstruction and recovery. The mining and agriculture sectors in particular have demonstrated robust growth in the context of favourable market conditions. As a result of large trade surpluses, a record current account surplus is anticipated. Fast-growing sectors such as Global Business Services have continued to expand and create employment at a rapid pace, showing new areas of potential for future growth.”
(SOURCE: INSIDE POLITICS)
