Coronavirus in South Africa: GDP collapsed by 51%

A member of medical staff during a coronavirus screening campaign in Lenasia, South Africa on April 21, 2020. REUTERS / Siphiwe Sibeko

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2 min

This is a figure that confirms the difficulties of South Africa.

In the second quarter of this year, gross domestic product collapsed 51%.

Unheard of in the history of the continent's most developed economy.

If since June, activity has restarted, it remains an unprecedented crisis with a recession over the entire year estimated at 7%.

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The eight weeks of

total

decreed at the end of March simply brought the country to a standstill.

South Africa, the country with the largest number of victims of Covid-19 on the continent, 13,000 dead at the end of August, has been very firm on health measures.

Results of whole sections of the economy stopped turning: tourism, mines, industries.

Gross domestic product fell by half between April and June, and for the year as a whole the recession will be around 7%, according to projections.

Since June the economy has restarted, but

.

According to the UNDP, the United Nations Development Program, it will take four years for the South African economy to overcome the crisis.

A major social crisis

Indeed, before the pandemic, the economy was already suffering from several structural problems: mass unemployment, public companies crippled with debt and a state that has no more money.

South Africa had, exceptionally, to borrow 3.6 billion dollars from the International Monetary Fund.

Finally, South Africans are experiencing a real social downgrading which will also leave deep traces.

A third of households will switch this year to the category of vulnerable households and extreme poverty will jump by 66% according to the UNDP.

The health crisis is already a major social crisis for Africa's second-largest economy.

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• South Africa

• Coronavirus

• Economic crisis

• Economy Africa

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