The second-quarter results are expected to paint an even bleaker picture of the impact of the national lockdown, which forced businesses to shut down, halting economic activity for over two months.

FILE: Statistician-General Risenga Maluleke. Picture: GCIS

JOHANNESBURG – Statistician-General Risenga Maluleke said that although the 2% GDP contraction recorded in the first three months of the year excluded the period under lockdown, the global effects of COVID-1919 were already being felt at the time.

He has explained that in the case of some industries, the negative growth recorded could be indicative of some of the global behaviour of economies, with some having effected lockdowns much earlier than South Africa.

The third consecutive decline that the economy recorded in the first quarter of the year is an indicator of things to come.

The second-quarter results are expected to paint an even bleaker picture of the impact of the national lockdown, which forced businesses to shut down, halting economic activity for over two months.

Statistician-General Risenga Maluleke: “There’s no doubt that we are seeing a lot of challenges globally and in South Africa, we had the lockdown running mainly in the second quarter, I’m talking about stage five and stage four. Now as we do so, we can expect the number to look differently from what they look now.”

Mining and manufacturing were the significant contributors to the poor performance, with mining recording a negative growth of 21.5%, the biggest decline in six years.

Exports decreased by 2.3% in the first quarter, while imports decreased by 16.7%, which was influenced by machinery and equipment, mineral products and travel services.

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— to ewn.co.za