SA's Q4 economic growth was largely due to easing of lockdown restrictions

Stats SA said that eight industries contributed to the 1.5% economic growth rate and 6.3% annualised GDP increase.

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JOHANNESBURG - Stats SA said that the country’s gross domestic product (GDP) increased at an annualised rate of 6.3% in the fourth quarter of 2020 while the economy grew by a non-annualised rate of 1.5%.

The increase, which measures the final value of all goods and services produced in the quarter, was largely attributed to the easing of lockdown restrictions.

READ: SA economy grew by 1.5% in fourth quarter of 2020

The positive GDP growth rate was not unexpected as businesses, industry and trade resumed near full operations during this phase just before the December holidays.

Stats SA said that eight industries contributed to the 1.5% economic growth rate and 6.3% annualised GDP increase.

Manufacturing increased at a 21.1% rate, contributing 2.4 percentage points to GDP, while the trade, catering and accommodation industry increased at a rate of 9.8%, contributing 1.3 percentage points to the growth.

A debate is also likely to rage following the release of the data after Stats SA's admission in the publication that the annualising of the growth could be misleading during a period of economic instability.

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