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Statistics South Africa said the economy rebounded in the third quarter of 2020, coinciding with the easing of COVID-19 lockdown restrictions, but said it comes off a low base.
“All industries recorded an increase in economic activity compared with the second quarter, with manufacturing, trade and mining leading the charge,” Stats said.
Businesses were supported by an increase in both exports and household spending.
Stats SA said gross domestic product grew by an estimated 13.5% in the third quarter, giving an annualised growth rate of 66.1%, following the significant slump of 16.6% (annualised: -51.7%) in the second quarter during the most restrictive months of the lockdown.
“The surge in economic activity in the third quarter may seem impressive, but it comes off the very low base recorded in the second quarter. South African industries still have a long way to go before reaching levels of production seen before the pandemic,” Stats SA said.
However, it said despite the rebound, the economy was still 5.8% smaller than it was at the end of 2019.
“Manufacturing, trade and mining were the biggest drivers of growth in the third quarter.
Statistics South Africa said household expenditure was still subdued compared with the third quarter of 2019, down 4.8% (not annualised).
“The rise in spending on restaurants and hotels might seem meteoric, but it is still half of what it was in the same period last year.”
Exports increased at an annualised rate of 201.4% in the third quarter of 2020, driven mostly by increased trade-in vehicles and transport equipment, precious metals and stones, machinery and equipment, and mineral products.
Imports were down in the third quarter, declining at an annualised rate of 1.6%.
