South Africa first quarter GDP falls 2% as recession continues
Topics: SOUTH AFRICA GDP
This extends the technical recession that the country found itself in in the last quarter of 2019.
The release of Stats SA’s latest quarterly GDP figures comes a week after Minister of Finance Tito Mboweni tabled his supplementary budget in response to the coronavirus pandemic.
Treasury now expects SA’s GDP to contract by a record 7.2% in this year, while tax revenues are projected to fall R300 billion short of the what was estimated in February budget.
“The electricity, gas and water industry contracted by 5.6% in the first quarter, largely due to decreases in electricity distributed and water consumption. The construction industry decreased by 4.7%. Decreases were reported for residential buildings, non-residential buildings and construction works,” said Stats SA in its report on the GDP figures released on Tuesday. ■