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SA's economy contracted by 16.4% in Q2

The data revealed that in the period, the economy generated R1,08 trillion.

People queue at a grocery store in Hillbrow on the first day of the coronavirus lockdown on 27 March 2020. Picture: Sethembiso Zulu/EWN

JOHANNESBURG - South Africa has fallen deeper into recession, with Statistics South Africa announcing the economy shrank by 16.4% from the first quarter to the second quarter of 2020.

But the agency said to look at this data differently: if the economy continued to contract in a similar way, the annualised figure would be set at 51%.

This drop was expected considering the impact of the COVID- 9 pandemic and the lockdown.

This is the fourth consecutive decline since the second quarter of last year.

The largest contributors to this drop are the manufacturing, the mining and quarrying industries which contracted by 74.9% and 73.1% respectively.

Agriculture was the only sector with a positive contribution, growing by just over 15%.

The data revealed that in the period, the economy generated R1,08 trillion.

It was further shown that household spending on most products declined in the second quarter, which was in line with the closure of hotels, restaurants, transport services, recreational facilities and many stores during hard lockdown. The ban on the sales of alcohol and tobacco products also impacted spending.

Consumers also spent more on communication services as lockdown regulations kept people at home.

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