Adriaan Kruger
3 minute read
9 Mar 2021
10:14 am

GDP expected to shrink by 7% in 2020 fourth quarter

Adriaan Kruger

The important figure to watch is the annual growth, which an economist says will show the economy shrank by around 7% compared to 2019.

Picture: iStock

Economists generally expect that the economy would have continued its recovery in the last quarter of 2020 – with forecasts mostly around the 5% level – but that the Covid-19 pandemic would see gross domestic product (GDP) shrink by around 7%. Statistics SA will announce the GDP figures for the final quarter of 2020 and the year today. Hugo Pienaar, chief economist at the Bureau for Economic Research, says the team at the University of Stellenbosch expects further economic recovery in the fourth quarter of 2020, but that the figure will not be as strong as the growth in the...