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South Africa s GDP shrunk by 7% in 2020, mainly due to strict lockdown restrictions

South Africa’s economy contracted by 7% in 2020 reflecting the full impact of the Covid-19 pandemic and the strict lockdown. In the fourth quarter of 2020, however, it posted growth of 1.5%, giving an annualised growth rate of -6.3% said Stats SA on Tuesday. Stats SA released its 2020 fourth quarter and full year GDP results. The agency stated that these results follow the revised 13.7% (annualised: 67.3%) rise in economic activity recorded in the third quarter. Statistician-General Risenga Maluleke said the annual real GDP growth rate of -7.0% in 2020 was primarily led by decreases in manufacturing. Statistician-General Risenga Maluleke. Picture: Morapedi Mashashe “The economy slumped by 7% in 2020. The positive growth recorded in the third and fourth quarters was not enough to offset the devastating impact of Covid-19 in the second quarter when lockdown restrictions were at their most stringent.

South Africa s business confidence slips back in Q1 as pandemic woes linger

By Reuters Staff 2 Min Read A shopper wearing a face mask waits her turn to pay for her grocery items, amid the spread of the coronavirus disease (COVID-19) at Mall of the south, in Johannesburg, South Africa, June 17, 2020. REUTERS/Siphiwe Sibeko (Reuters) - South Africa’s business confidence slipped in the first quarter of this year after recovering in 2020 end, despite easing COVID-19 curbs, a survey showed on Wednesday, highlighting the fragility of the economic recovery process. The Rand Merchant Bank (RMB) business confidence index, compiled by the Bureau for Economic Research, fell to 35 points in the first quarter from 40 points in the last quarter of 2020.

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