Stats SA Revealed That Local Economy Has Shrunk by 1.5% in the Last Quarter, Weighing Up the Pandemic's Role

• Statistics South Africa has announced that South Africa's GDP shrunk by 1.5% in the third quarter of 2021.
• The four years of steady economic growth South Africa experienced before the covid-19 pandemic has been erased
• Manufacturing, agriculture and trade saw the greatest losses in the third quarter, particularly in their production ability

JOHANNESBURG - Statistics South Africa (Stats SA) has announced that the South African economy shrunk by 1.5% in the third quarter of 2021.

In total, South Africa's economy has shrunk to 3.1% less than where it was before the Covid-19 pandemic began.

According to eNCA, South Africa experienced four years of economic growth before the start of the pandemic.

Details of South Africa's economic decline

The three industries which experienced the largest production decline in South Africa are manufacturing, agriculture and trade.

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Stats SA reported that the looting and protests in July 2021 paired with the general effects of the Covid-19 pandemic as a whole caused the country's GDP to shrink in the third quarter.

South Africa's GDP is currently similar to where it was in 2016, meaning that years of economic progress has been destroyed.

South Africa reacts to news of an economic decline

@BuddyWells1 asked:

"Will South Africans continue to believe in austerity and tight monetary policy no matter how bad things get?"

@duli_boehelo said:

"Anticipating whether we'll see growth in the final quarter of the financial year. SA will enter its third recession of Cyril Ramaphosa's presidency if GDP falls again. #economy."

@Cheetahplains remarked:

"July chaos "revolutionaries" should be happy."

@pakesdikgetsi believes:

"There will be no consequences for the Ministers in the Economic Cluster. No accountability for poor performance."

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@CKkwena_2010 said:

"3rd wave lockdown that lasted the longest is the major cause."

South African banks reveal Black Friday big spenders

Previously Briefly News reported that South Africa's top banks have reported that this year's Black Friday that took place on 26 November saw an increase in spending in comparison to the previous year.

Some South Africans made some big purchases while others opted to buy a large number of products on that day despite concerns that the Covid19 pandemic will be a damper on spending habits.

A Nedbank customer made the biggest single transaction purchase in South Africa on the annual discount day and spent a total of R697 236.15 while a Discovery Bank customer bought a total of 70 items on Black Friday.

Source: Briefly News