News   /   More

South Africa's economy shrinks after riots, COVID-19 measures

US Rep. Ilhan Omar (D-MN) (L) talks with Speaker of the House Nancy Pelosi (D-CA) during a rally with fellow Democrats before voting on H.R. 1, or the People Act, on the East Steps of the US Capitol on March 08, 2019 in Washington, DC. (AFP photo)
South Africa's economy shrank for the first time in a year in the third quarter as the country was hit by riots and tighter Covid restrictions. (Photo by AFP)

South Africa's economy shrank for the first time in a year in the third quarter as the country was hit by riots and tighter COVID restrictions, official statistics showed Tuesday.

After four consecutive quarters of growth, the economy contracted by 1.5 percent between July and September compared to the previous three-month period, the Stats SA agency said.

The contraction eroded "some of the economic gains the country has made since the severe impact of COVID-19 in the second quarter of 2020," Stats SA said in a statement.

The economy underperformed "under the twin pressures of tighter COVID-19 lock down restrictions and a spate of civil disorder in July, as well as several other headwinds", the agency said.

A spree of arson and looting rocked parts of South Africa in July following the jailing of ex-president Jacob Zuma for contempt.

The country worst-hit by COVID in Africa also tightened coronavirus restrictions that month to tackle a third wave of infections.

Trade, catering and accommodation industries fell by 5.5 percent.

Manufacturing shrank by 4.2 percent, while agricultural activity plunged by 13.6 percent, its biggest drop in five years.

Africa's most industrialised country was in recession when the pandemic hit.

A hard lock down imposed in March last year brought many industries to a standstill, and rolling restrictions have continued to stifle business.

The economy contracted by a record 6.4 percent in 2020, but rebounded faster than expected during the first half of this year.

It was predicted to grow by 5.1 percent in 2021 last month.

(Story by AFP)


Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.ir

www.presstv.co.uk

SHARE THIS ARTICLE
Press TV News Roku