Sub-Sahara African GDP Growth: South Africa Report Fourth Contraction in Q2-2020

Proshare

Friday, September 11, 2020/ 02:45PM / United Capital Research / Header Image Credit: Brand Spur


 Proshare Nigeria Pvt. Ltd.


COVID-19 has had a far-reaching impact on the global economy with Africa, not an exception. Using the Gross Domestic Product (GDP) growth rate of the two biggest economies (Nigeria and South Africa) in Africa as a proxy, it would not be out of place to say that second quarter of 2020 will be known as the pandemic quarter in history considering its effect on GDP growth rate during the period.

 

The Nigerian economic activities contracted in Q2-2020, as the real GDP declined by 6.1% y/y representing the steepest economic decline in Nigeria in over three decades. Similarly, South Africa's economy suffered a significant contraction during the period as GDP fell by over 17.1% y/y in Q2-2020, or 51.0% q/q. Interestingly, the Agric sector proves to be immune to the pandemic by being the only sector with positive growth in South Africa, also one of the few outliers for the Nigeria GDP growth.

 

For the rest of the year, we believe that the sharp contraction recorded in Q2-2020 is as worst as it can get for the year as governments across the continent continue to phase-out lockdown measures implemented to curb the spread of COVID-19 within their respective country. However, we expect economic recovery to vary from country to country, depending heavily on the improvement in the external dynamics and the timeframe required to bring economic activities back to pre-COVID-19 levels.

 

Top African Stories

  • South Africa GDP plunge, revenue shortfall to delay debt stabilisation Read More

 

  • S.Africa's Eskom expects 2021 replacement of generators at nuclear plant Read more

 

  • GreenTec Capital Partners invests in Cameroon-based Freshbag Read More

 

  • Nigerian startup Seta launches app to help companies determine market presence Read more

 

  • Kenya gets $750 mln from the World Bank to develop its arid north Read more

  • Zimbabwe's fruit farm Nhimbe Fresh eyes UAE's export market with US$15m investment Read more

 

  • Egypt to hold parliamentary elections on October 24-25, official says Read More

 

  • Nigerian President Buhari directs central bank to stop issuing foreign exchange for food imports Read more

 

  • Kenyan companies collaborate to address dairy shortages Read more

 

  • Export Trading Group secures US$400m from Afreximbank to drive agricultural productivity in Africa Read more

 

Looking Forward

 

Angola

Aug-2020 Inflation Report - September 22nd

Aug-2020 Net Reserves - September 22nd

 

Ghana

Q2-2020 GDP Report - September 16th

Aug-2020 M2 Money Supply - September 24th

Jul-2020 Gross Reserves - September 24th

 

Kenya

Jul-2020 M3 Money Supply - September 18th

Jul-2020 Overseas Remittances- September 18th

 

Morocco

Aug-2020 Inflation Report - September 22nd

Q2-2020 GDP Report- September 26th

 

Nigeria

Aug-2020 Inflation Report - September 15th

Aug-2020 Private Sector Credit- September 27th

 

South Africa

Sept-2020 MPC Meeting - September 17th

Q2-2020 Unemployment Data - September 28th

Aug-2020 Private Sector Credit - September 30th

Aug-2020 Inflation Report - September 30th

 

Visit African Markets in Proshare MARKETS

 

Proshare Nigeria Pvt. Ltd.

 

 Proshare Nigeria Pvt. Ltd.

 

Related News 

1.      Chinese Banks' Profit Decline to Worsen In 2H20

2.     What PMIs Tell Us About Economic Recoveries In Africa

3.     ESMA Sees High Risk of Decoupling of Financial Market Performance and Underlying Economic Activity

4.     China's Mega Banks Lost Billions of Dollars in Profit as Bad Loans Rise During Coronavirus Pandemic

5.     Ghana Provides Reflective Accounts of Events With Nigeria

6.     Africa's Travel and Tourism Industry: Is Recovery at Sight?

7.     SSA Economic Update: Sub-Saharan Africa: Between Lives and Livelihoods

8.     The COVID-19 Story from South Africa

9.     SSA Foreign Exchange in H2-2020: To Recover to Pre-COVID-19 Level?

10.  Output Growth Outlook: A Synchronized Slowdown and Contraction?

11.   SSA Eurobond Market in H2-2020: Monetary Stimulus to Spur Market Recovery

12.  Life Under COVID-19 for China and Africa

13.  SSA Economic Update: Sub-Saharan Africa: Between Lives and Livelihoods

14.  The COVID-19 Story from South Africa

15.  SSA Foreign Exchange in H2-2020: To Recover to Pre-COVID-19 Level?

16.  Output Growth Outlook: A Synchronized Slowdown and Contraction?

17.  SSA Eurobond Market in H2-2020: Monetary Stimulus to Spur Market Recovery

18.  Life Under COVID-19 for China and Africa

19.  Communique of G20 Finance Ministers and Central Bank Governors Meeting of July 18, 2020

20. SSA Fiscal Policy Response and Debt Sustainability: Striking the Right Balance


Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP