The South African government statistics body on Tuesday, September 8, announced that the country’s Gross Domestic Product contracted by 51% in the second quarter of this year. The decline in GDP, according to the statistics body, results from the impact of Covid-19. “Notably, this was the fourth consecutive decline in quarterly GDP since the second quarter of 2019,” the body said in a statement. Statistically, the manufacturing industry contracted by 74.9% in the second quarter, “All ten manufacturing divisions reported negative growth rates in the second quarter,” reads part of the statement. It added that the trade, catering and accommodation industries decreased by 67.6% due to decreased economic activity reported in wholesale trade, retail trade, motor trade, catering and accommodation. Besides, the mining and quarrying industry decreased by 73.1% contributing to -6.0 percentage points to GDP growth. “Owing to global lockdown restrictions, demand for mineral products fell, contributing to decreased production in platinum group metals (PGMs), gold, iron ore, chromium ore and coal,” the statistics body said. In contrast, the agriculture, forestry and fishing industry was the only positive contributor to GDP growth, with an increase of 15.1% and a contribution of 0.3 of a percentage point to GDP growth. “The increase was mainly due to increased production of field crops and horticultural and animal products,” the statement added.
