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South Africa's economy faces uncertain future

By CHEN YINGQUN | China Daily | Updated: 2020-08-18 08:27
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A water cannon is used to disperse restaurant workers protesting against coronavirus lockdown regulations in Cape Town last month. [Photo/Agencies]

Before the onset of COVID-19, the South African economy was technically in decline.

According to Statistics South Africa, in the third and fourth quarters last year, the country's GDP contracted by 0.6 percent and 1.4 percent respectively.

Statistics South Africa said GDP for the first quarter of this year fell by 2 percent year-on-year, while the Ministry of Finance has said the economy is expected to shrink by 7.2 percent in 2020, the largest contraction for nearly 90 years.

Some 3 million people have lost their jobs nationwide as a result of the lockdown, representing an 18 percent decline in employment, according to findings from the National Income Dynamics Coronavirus Rapid Mobile Survey.

"COVID-19 may be with us for some time. One of our greatest qualities as human beings is the ability to learn, adjust and adapt. This is what COVID-19 requires from all of us," Vhumbunu said.

To survive the pandemic, industries and companies in South Africa have innovated.

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