South Africa’s gross domestic product (GDP), reported to have shrunk by 7% in 2020 compared to 2019, is bad news for South Africa as we are trying to recover from the havoc wreaked by Covid-19 and hard-lockdown regulations.
Stats SA announced the worst economic contraction in almost a century earlier this week together with the numbers for the 4th quarter of 2020. This was the first formal view of the damage the Covid-19 pandemic caused the country in 2020.
The mining sector numbers are encouraging, showing that the sector’s economic activities were not entirely disturbed by the pandemic, and those employed in the industry still enjoyed a stable income.
Exports, household expenditure and inventory accumulation also fared comparatively well, but the unstable growth in the electricity, transport and communication sectors remain problematic.
Now that we are operating under level 1 again, the economy is opening up and lost profits from last year are being recovered. Still, we did not start 2021 on a good note. Too many industries are still affected, and economic recovery is not picking up fast enough.
UASA urges government to step in and assist direly affected industries. Getting our GDP back on track will see South Africa growing faster – failure to do so will see already over-burdened South Africans bogged down by ever-higher costs of living.
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