GDP numbers emphasises agriculture as the backbone of the economy
8 September 2020
The Gross Domestic Product (GDP) numbers released by Stats SA today, indicates a decline of 51% in the second quarter of 2020. This fourth consecutive quarter decline since the second quarter of 2019, catapulted South Africa’s economy into a recession.
“It is important to realise that the South African economy was already in a recession before the lockdown was implemented by the government. The contraction in GDP in the second quarter of 2020 was not due to the outbreak of the COVID-19 virus itself, but rather due to the lockdown regulations that were enforced by the government. The lockdown regulations are among the strictest regulations in the world bringing down many other industries to their knees,” said Christo van der Rheede, deputy executive director of Agri SA.
According to Stats SA, due to increased production of field crops and horticultural and animal products, the agriculture sector expanded by 15.1% This industry was the only positive contributor contributing 0,3 of percentage points to GDP during the second quarter of 2020.
According to Van der Rheede the agricultural sector was very fortunate in that it was declared an essential services. “For that, we are very grateful. It helped to strenthen food security in our country.”