Agriculture shines as GDP plummets
Written by Lethiwe Mdluli on 9 September, 2020
The latest data from Statistics South Africa which shows a massive decline in the gross domestic product is an indication that the country has fallen deeper into recession.
GDP, which is the total value of goods and services produced in the country has dropped by 51% in the second quarter of this year.
The massive loss is mainly due to the effects of Covid-19 and the national lockdown that led to most industries closing for months without production or profit.
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Meanwhile president, Cyril Ramaphosa, has called for an urgent rebuilding of the country’s economy.
In a statement, Ramaphosa says the focus now needs to shift to how the economy can be salvaged and helped to recover.
In an attempt to curb the spread of the coronavirus, government imposed lockdown restrictions, which meant a total shutdown of the country’s economy during level 5, with only essential services allowed to operate.
The economy was already in a bad state, months before the country was hit by the pandemic.
With all of the country’s boards closed as expected the economy took a harder knock as this forced all non-essential services and businesses to also cease operation.
Ramaphosa has called on all sectors and industries to do everything in their legal power to help boost the economy and avoid a further slip into recession.
By: Zilungile Mkhize and Sthulile Mdletshe