Treasury expects 5.8% economic contraction this year

South Africa’s national treasury expects an economic contraction of 5.8% in 2020 but with an expected rebound to 4% growth in 2021, according to a presentation to parliament’s finance committee seen by Reuters.

Africa’s most industrialised nation was already in recession before the coronavirus shut down the economy, with overall GDP growth for 2019 at only 0.8%, owing largely to power shortages that hurt industry.