Economist Annabelle Bishops says the country’s Gross Domestic Product (GDP) could improve as the economy is reopened and coronavirus lockdown regulations relaxed.
During the second quarter of 2020 South Africa’s Gross Domestic Product showed a 51 percent annualised decrease.
Bishops says increased economic activity is expected to slightly improve GDP.
“So we certainly expect to see a lift in economic activity in the third quarter. We [are] looking at about 16.3%. This may be a bit optimistic but the point is that it’s coming off a very low very weak base caused by this contraction.”
She adds: “Of course some of the data that came out already even show there’s been a bit of a lift in June. But again very careful to remember that this is a lift on the previous month when restrictions were even worse in may and of course even worse in April,” explains Bishop.
Meanwhile, Chief Economist at Efficient Group, Dawie Roodt says the expected rebound in economic and Gross Domestic Product (GDP) growth in the third quarter of the year will not be enough to turn around the country’s growth picture as the economy recovers from the impact of the nationwide lockdown due to the coronavirus pandemic.
Figures released by Statistics South Africa on Tuesday show that during the second quarter of 2020 South Africa’s GDP showed had a 51% annualised decrease.
President Cyril Ramaphosa reacted to the figure by saying the Presidential Employment Stimulus will commence implementation within the next month to increase job opportunities through public and social employment to counteract job losses.
Below is Ramaphosa’s full statement:
Source: SABC News (sabcnews.com)