No, the SA economy didn’t shrink by 51%
The latest GDP data was worse than expected.
SA’s economy shrank by a large margin.
But due to the way it is calculated, the headline number of 51% may be a bit of an overstatement.
The latest economic data was enough to tip even the biggest South African optimist into a vat of existential despair.
Given South Africa’s stringent lockdown, with mining and manufacturing grinding to a halt for weeks, only limited shopping allowed at first and a ban on restaurant visits, travel, booze as well as cigarettes for long stretches, a sharp economic decline was expected. Still, the headline number, in particular, was a shocker: GDP slumped by 51% in the second quarter. It was worse than most economists expected.
Manufacturing and mining output fell by more than 70% during the three months to June, as almost all sectors shrank.
Read the full story on: Business Insider.