GDP statistics were released yesterday and they showed an economy in deep recession.
Growth contracted by 51% q/q seasonally adjusted and annualised (Saar), much worse than the Bloomberg consensus expectations for a contraction of 47.2%. The South African Reserve Bank had expected 40% q/q Saar contraction. The unannualised contraction is 16.4% q/q, while we compare it with the second quarter of 2019 (the y/y figure), the economy contracted by 17.2%.
All sectors except agriculture, most of whose subsectors were declared essential services and thus were not closed, recorded deep contractions. The contraction is therefore broad-based and was to be expected.