SA economy grows by 1.2%

2021-Sep-08   05:51

SA economy grows by 1.2% Source: Sourced

- Gomolemo Mothomogolo

South Africa's economy recorded the fourth consecutive growth of 1.2% in second quarter of the year 2021 with activity returning to pre-COVID-19 levels.

StatsSA released the second quarter Gross Domestic Product (GDP) figures on Tuesday.

“Our GDP rose by 1.2%  as of the second quarter of 2021 that is seasonally adjusted. When we look at the year-on-year it rose by 19.3% and it rose again by 7.5% six month on six months,” said Statistician General, Risenga Maluleke.

Despite a steady recovery the economy remains 1.4% smaller than what it was before the COVID-19 pandemic.

“In the first quarter of that year, real GDP was R1 147 billion, tumbling to R947 billion in the following quarter as the country barricaded itself against the pandemic,” said StatsSA.

It added: “The economy has seen consistent growth since that shock, but not enough to return to pre-COVID-19 levels. Real GDP was R1 131 billion in the second quarter of 2021, 1.4% down from the reading in the first quarter of 2020”.

StatsSA said the impact of the spate of violent protests that hit Gauteng and KwaZulu-Natal in July will only be felt in the third quarter.

The protests were sparked by the arrest of former President, Jacob Zuma, resulting in businesses losing billions of Rands.

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