South Africans on the street are weighing in on the latest economic indicators showing the economy contracted by 51 per cent in the second quarter of this year.
South Africa’s economy shrank by more than half in the second quarter, an unprecedented decline, as the coronavirus pandemic took its toll on the continent’s most industrialised state,
“Financially we are struggling, most people have lost their jobs and companies have shut down, so with us it is very difficult to say that we have any income because we have been on lay off. So since the lockdown has started, I don’t see that getting fixed anytime soon from now on.” said Precious Mauabane.
Kgomotso Mokobi, another habitant, said “It is going to take a long time for people to actually have and drive employment again, for people to be able to sell their stuff normally or get back to the economic flow that they are used to, it is definitely going to get worse before it gets better.”
The predicted drop in GDP was driven largely by steep declines in the construction, manufacturing and mining sectors, where activity shrank by up to 70 percent.
The record contraction came after a lockdown imposed on March 27 — one of the world’s strictest — brought most economic activity to a standstill.
South Africa’s economy was already in recession — its second in two years — when it was hit by the virus, and had shrunk by two percent during the first three months of 2020.