It could take SA up to six years to see growth in GDP: Economist
Economist Mike Schussler says it will take five to six years to see growth in South Africa's GDP.
Our economy shrunk by 51% in the second quarter of the year as the country went into a hard lockdown because of the coronavirus pandemic.
The figures were released by StatsSA today.
It's the fourth consecutive quarterly decline - and takes us deeper into recession.
Schussler says it will be a very long road to recovery especially with load shedding. "
"To go back a little more on the figures of 2019, for the GDP to rise, it will need growth of 19.9 percent. Any disruptions will make it even longer. To get back to the GDP per capita level every year with about 1.5percent will probably take an excessive 10 years."
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Meanwhile, President Cyril Ramaphosa says the GDP contraction by half - should spur all of us to do all we can to help rebuild the economy.
Our economy shrunk by 51% in the second quarter of the year.
These were the months that we were in alert levels 5, 4 and 3 of the lockdown because of the coronavirus pandemic.
Ramaphosa says following these figures - the country now needs to rebound strongly in the coming quarters.
He says he'll soon be presented with a Social Compact on Economic Recovery - and then the government will finalise its Economic Recovery Strategy, which will include fast-tracking urgent structural reforms, expanding employment programmes and facilitating large-scale investment in infrastructure projects.
