The Economy We’re saved! No, doomed! etc.
Good news? More like a crashing indictment, if you ask the swelling ranks of SA’s unemployed. According to StatsSA, rebasing the number off the year 2015 according to global best practice, South Africa is the 36th wealthiest country in the world, with GDP of $335.2bn. The economy grew +1.2% in the second quarter, the fourth straight quarter of growth, although the economy remains 1.4% smaller compared to pre-COVID. Growth during the period was driven by the transport, storage and communication industry, which increased by +6.9%, by the personal services industry at +2.5%, and by the trade, catering, and accommodation industry at +2.2%. Household final consumption expenditure (HFCE) increased by +0.5% in the second quarter, with an increase in spending on food and non-alcoholic beverages of +1.7%, behind both transport and health. Related: According to Nedbank, the areas of greatest uncertainty – and thus, perhaps opportunity – for the economy in the months and years ahead are around the future trajectory of COVID-19, the ongoing contribution of exports to growth, the ability of the government to accelerate solutions to the energy situation, Government expenditure on infrastructure projects, and inflation.
Comment: Challenges, yes. But this is not a picture of final economic decline, by any measure.