In South Africa GDP is measured by two methods. Production method (the official GDP figure) and the expenditure method. The one measures the total value added of all goods and services produced (production method), while the other measures GDP via total spending that has taken place in the economy (expenditure method).
South Africa’s economy plunged due to the impact of the Covid-19 pandemic and the hard lockdown (Level 5) and the slow and gradual unwinding of lockdown regulations over the last couple of months. While the number is extremely bad for South Africa’s economy it was not unexpected. And South Africa’s economy was in deep trouble before the Covid-19 pandemic. This pandemic just made South Africa’s economic hardship so much worse. This is the fourth consecutive quarter that South Africa’s GDP number has been negative.
The quarter on quarter annualised growth rates (fancy speak for assuming growth in the industry from Q2:2020 over Q1:2020 continued for a full year) for the various sectors of South Africa is summarised below:
- Agriculture/forestry and fishing: 15.1%
- Mining: -73.1%
- Manufacturing: -74.9%
- Electricity/water and gas supply: -36.4%
- Construction: -76.6%
- Trade (wholesale, retail and motor trade): -67.6%
- Transport: -67.9%
- Finance, Real Estate and business services: -28.9%
- Government: -0.6%
- Personal services: -32.5%