UPDATE 1 – South Africa’s GDP grows in This fall however registers sharp annual contraction
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PRETORIA, March 9 (Reuters) – South Africa’s gross home product grew quarter-over-quarter within the three months ending in December, pushed by increasing manufacturing, building and commerce, however the financial system recorded its largest annual contraction in seven many years in 2020.
The South African financial system, which was in recession earlier than the COVID-19 pandemic, deteriorated sharply final yr after the federal government imposed a strict lockdown to curb the unfold of the coronavirus.
Statistics South Africa stated on Tuesday that GDP grew 6.3% quarter on quarter on a seasonally adjusted and annualized foundation within the fourth quarter after a revised improve of 67.3% within the third quarter.
Nonetheless, the financial system contracted by 7% in calendar yr 2020, up from 0.2% progress in 2019. That is the largest drop in annual GDP since 1946, stated Mike Manemela. , answerable for financial statistics at Stats SA.
Quarter over quarter, manufacturing jumped 21.1%, building 11.2% and commerce jumped 9.8%.
GDP contracted 4.1% within the final quarter of 2020 on an annual foundation, in comparison with a revised 6.2% contraction within the earlier quarter.
The coronavirus lockdown has since been relaxed, however the danger of a resurgence of infections and the reimposition of tighter restrictions stays because the nation lags behind richer Western international locations in launching its vaccination marketing campaign.
The federal government has but to ramp up its vaccination program, which was launched final month with the administration of doses of Johnson & Johnson to well being staff as a part of a analysis examine. (Reporting by Mfuneko Toyana, written by Olivia Kumwenda-Mtambo, edited by Catherine Evans and Alison Williams)