South Africa’s recession- and coronavirus-hit economy has registered a gross domestic growth (GDP) decline of two percent in the first quarter of 2020, Statistics South Africa (Stats SA) said on Tuesday.
According to a Stats SA report, the contraction was due to declines in several key economic sectors such as mining, manufacturing and trade as the recession registers 30 percent during the coronavirus lockdown.
“The mining and quarrying industry decreased by 21.5 percent and contributed 1.7 percentage points to GDP growth,” Stats SA said, adding that decreased production was reported for iron ore, manganese ore, other metallic minerals and chromium.
The manufacturing industry during this period contracted by 8.5 percent, with “seven of the 10 manufacturing divisions reported negative growth rates in the first quarter,” it said.
“The divisions that made the largest contributions to the decrease were petroleum, chemical products, rubber and plastic products; basic iron and steel, non-ferrous metal products, metal products and machinery, and motor vehicles, parts and accessories and other transport equipment,” the agency said.
Stats SA pointed out that the electricity, gas and water industry contracted by 5.6 percent in the first quarter, largely due to decreases in electricity distribution and water consumption.
In addition, the construction industry decreased by 4.7 percent. Decreases were reported for residential buildings, non-residential buildings and construction works, the agency said.
However, the agriculture, forestry and fishing industry increased by 27.8 percent and contributed 0.5 of a percentage point to GDP growth, Stats SA said.
The increase was mainly due to increases in the production of field crops, horticultural products and animal products, it added.
NM/jn/APA