Ina Opperman
Business Journalist
2 minute read
8 Sep 2020
3:41 pm

Worst GDP ever, but there is hope

Ina Opperman

Analysts are not surprised at the news that South Africa’s gross domestic product decreased by 51% year-on-year in the second quarter of 2020, saying that it was expected. The question now is how the economy will recover.

Picture: iStock

The latest GDP decrease is the worst ever since 1920, when the GDP decrease was 11.9%. Dr Elna Moolman, head of SA macroeconomic, fixed income and currency research at Standard Bank South Africa, said the GDP decrease was indeed horrible and the whole year would probably see a decrease of 8%. “I am glad that it was not worse than we expected and that it is only a reflection of the lockdown restrictions.” Electricity use is a good indicator of economic recovery and it has recovered very well, with usage last week back to where it was in Q1 and...