As most countries experience crisis globally, South Africa’s economy has shrunk by 51% in the second quarter of 2020.
Eventhough one of the strictest lockdowns in the world was imposed in one of the continent’s most industrialised economy, the country’s economy still shrunked.
According to BBC, a contraction was expected, but these numbers are staggering.
On the sectors of the economy affected, the aviation, tourism and hospitality are coming to a virtual standstill, except agriculture.
The controversial ban on alcohol and cigarettes saw consumer spending on these items fall by a massive 92%.
At the moment, the country is paying a heavy price for its early and aggressive lockdown. The strategy is credited with controlling the spread of the pandemic, but an economy already in stagnation has been hit hard.
Going memory lane, the contraction means, for the first time since the dawn of multi-party democracy in 1993, South Africa’s economy has seen four consecutive quarters of decline – further deepening the country’s economic slump.
