Markets stable, rand stronger, despite devastating economic recession

By Chris Harmse

PRETORIA – The news that the South African economy recorded a dismal -51 percent (quarter-on-quarter) economic growth during the second quarter of 2020 was a surprise for most economist and analysts.

It is the third consecutive quarter of negative growth as the country’s economy tumbled into its deepest recession ever. The economy recorded a 1.4 and -1.8 percent negative economic growth rate during the fourth quarter of 2019 and quarter one of 2020.

The year-on-year number for second quarter 2020 was -176 percent.

Over the first six months the economy had contracted by -9.2 percent.