Last week we told you that joblessness in South Africa reached an all-time high because of Covid-19 and the July unrest. In the third quarter, the economy took a beating for the same reasons. Our gross domestic product (GDP), which measures the size of the economy by looking at certain transactions and purchases, shrank by 1.5%. This effectively wiped out the growth recorded in the last four successive quarters. 😕 Mining and agriculture aided growth previously, but this time around, agriculture (and trade) were the worst-performing industries, 👎🏽 mainly due to the looting and destroyed farms during the unrest in Kwa-Zulu Natal. Financial services and personal services picked up, Stats SA’s report shows.
What does this mean for us? It increases unemployment and widens the inequality gap, while income could even fall, but we’re not an anomaly. The pandemic turned the entire world upside down and many countries recorded relatively slow growth; India recorded a 10.20% slump in its economy over the same period. Fitch Ratings agency forecasts slow economic growth globally in 2022. It’s depressing, but with vaccinations underway, we’re hoping business will pick up, providing a much-needed economic boost. 🌱
This article appeared as part of The Wrap, 9 December 2021. Sign up to receive our weekly updates.